On Monday, Feb. 27, real estate lender Broadmark Realty Capital (NYSE: BRMK) announced plans to merge with Ready Capital (NYSE: RC). Under the terms of the deal, Broadmark's shareholders will see each share of its stock that they own converted into 0.47233 shares of Ready Capital's stock. 

Broadmark's shares shot up over 18% on the day, reflecting the substantial premium to its prior share price that Ready Capital was willing to pay. Despite that premium to the Broadmark's previous market price, Ready Capital is still arguably getting a decent deal with this merger. After all, the merger price is estimated to be around 0.85x Broadmark's tangible book value. In accounting terms, that basically means it's making the acquisition for less than it would take to build the business from scratch.

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Source Fool.com