Asset manager Waterfall buys Alternative Credit Investments for 639 million pounds

LONDON (Reuters) - U.S. asset manager Waterfall has agreed to buy UK firm Alternative Credit Investments (ACI) <ACI.L> for 639 million pounds in cash, the companies said on Tuesday.

The acquisition price of 870 pence per share represents a premium of around 5.1% to the closing price of 828 pence per share of Alternative Credit Investments, formerly Pollen Street Secured Lending, on Feb 24.

ACI's board recommended the offer in February, at the same time as ditching its investment management agreement with private equity firm Pollen Street Capital.

Waterfall became ACI's investment manager last month.

The acquisition is being made by Waterfall EIT UK Ltd, a newly formed company owned by Waterfall Asset Management. The deal already has the support of 41% of ACI shareholders, the companies said.

(Reporting by Carolyn Cohn, editing by Sinead Cruise)