NEW YORK CITY—In a deal that will enable American RealtyCapital Properties to focus solely on net lease, ARCP isselling Cole Capital to another company withcommon ancestry. RCS Capital will acquire ColeCapital for at least $700 million in cash, stock and assumed debt,the two companies announced Wednesday.

A private capital management business, Cole Capital came intothe ARCP fold as part of the $11.2-billion merger with ColeReal Estate Investments, which closed this past February. For ARCP, the salemeans a simpler business model, while for RCAP, it means anincrease in assets under management and the addition of seven ColeCapital investment programs that will bolster its presence innet lease.

As part of the transaction, ARCP will be entitled to an earn-outof up to an additional $130 million based upon Cole Capital's 2015EBITDA. Additionally, ARCP will act as sub-advisor to ColeCapital's non-traded REITs and acquire andproperty manage net lease real estate assets for them. Inaddition, ARCP has agreed to source, underwrite and acquire US netlease properties for American Realty Capital Global TrustII Inc., a net lease REIT formed this past spring.