Annaly Capital acquires REIT for $1.5 billion

Publicly traded real estate investment trust Annaly Capital Management reached a deal to acquire another REIT, Hatteras Financial, adding a stable of residential mortgage securities to its portfolio.

Annaly said Monday that it would acquire Hatteras in a cash-and-stock deal worth $1.5 billion. The deal values Hatteras shares at $15.85, or 24% higher than their two-month average price.

The acquisition further diversifies Annaly's REIT investments, including mortgage-backed securities, mortgage servicing and residential loans, the company said in a statement.

“With the acquisition of Hatteras, we significantly grow our diversified portfolio and broaden our investment options, further fortifying Annaly’s position as the market leading mortgage REIT," Annaly CEO Kevin Keyes said in a statement.

Annaly shares (NLY) fell 2% in early trading but recovered to close up 0.3% at $10.44. Hatteras shares (HTS) jumped 10.8% to close at $15.80.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.