#United States #New York #Blue Owl #OTF #OTF II

Blue Owl Technology Finance Corp. and OTF II Merger Update

On March 20, 2025, Blue Owl Technology Finance Corp. and its subsidiary, Blue Owl Technology Finance Corp. II, publicly announced that both companies have successfully obtained shareholder approval for their previously announced merger. This merger will see Blue Owl Technology Finance Corp. as the surviving entity, a move expected to enhance the overall operational capacity and market presence of the combined companies in the software investment sector.

Overwhelming Support from Shareholders

During the series of shareholder meetings held on the same day, nearly all cast votes from shareholders of both OTF and OTF II were in favor of the proposed merger. This overwhelming support reflects a unanimous belief in the strategic advantages that this merger presents, especially highlighting how it is expected to be beneficial for the net investment income of shareholders from both entities.

Craig W. Packer, the CEO of both Blue Owl Technology Finance Corp. and its subsidiary, expressed gratitude towards the shareholders for their robust backing of the merger. According to him, this merger is not just a merger but a strategic move designed to create the largest software-focused Business Development Company (BDC) by total assets. Packer emphasized the vision of leveraging the newly combined scale to provide immediate and ongoing benefits to all shareholders involved.

Implications for the Combined Company

Upon finalization of the merger, which is anticipated around March 24, 2025, several notable outcomes are expected. The agreed merger promises to enhance operational efficiencies and provide stronger financial backing for future investments in technology-driven ventures, particularly in the software domain. The combined company is projected to possess a more diversified portfolio and the ability to engage in larger and potentially more prosperous investment opportunities.

As of the end of 2024, Blue Owl Technology Finance Corp. had made investments in 148 portfolio companies valued at approximately $6.4 billion. Similarly, its subsidiary, OTF II, had invested in 125 companies reflected in a value of around $5.4 billion. This expansive investment landscape positions the new company for substantial growth and influence in the technology finance sector.

Future Projections

While the merger is a significant step forward, it’s pivotal to acknowledge the potential risks that come with any business merger. Statements released by both companies included forward-looking remarks that hint at the anticipated outcomes for net investment income and operational efficiencies. However, they also warn of uncertainty that could affect future performance, ranging from external economic factors to operational integration challenges.

Despite these hurdles, the overarching sentiment from both Blue Owl Technology Finance Corp. and OTF II remains optimistic. The successful completion of the merger will undoubtedly forge a stronger entity capable of navigating the evolving landscape of technology investments, delivering value to shareholders, and enhancing service offerings in the dynamic market.

Conclusion

This merger is a landmark moment for both Blue Owl Technology Finance Corp. and OTF II, marking a new chapter that aligns with their ambition to be leaders in the technology investment space. As the financial industry awaits the closing date of March 24, 2025, all eyes will be on this newly formed entity, poised for great things in the thriving world of software investments.