Government Properties Income Trust has entered into an agreement to acquire First Potomac Realty Trust in a deal valued at $1.4 billion deal. Under terms of the agreement, GOV will acquire all of the outstanding shares of First Potomac, while assuming its debt as well. First Potomac shareholders will receive $11.15 in cash per share at the close of the transaction, representing a premium of approximately 9.3 percent to First Potomac’s 30-trading day Volume Weighted Average Price ended April 24, 2017. Subject to customary closing conditions, including approval by First Potomac shareholders at a special meeting, the deal is expected to close prior to year end 2017.
“The Board of Trustees conducted a thoughtful and comprehensive review of strategic alternatives and we are pleased to reach this agreement with GOV to maximize value for shareholders,” said Robert Milkovich, Chief Executive Officer of First Potomac Realty Trust. “Over the last 18 months we have worked diligently to refine the Company’s portfolio, strengthen the balance sheet, and enhance First Potomac’s corporate governance. This transaction and the attractive value that shareholders will receive demonstrates the successful execution of these efforts and is a testament to the dedication of First Potomac’s employees.”
