Government Properties Income Trust To Acquire First Potomac Realty Trust

(RTTNews) - Government Properties Income Trust (GOV) announced its Board of Trustees has approved a merger agreement to acquire all of the outstanding common shares of First Potomac Realty Trust (FPO) for an aggregate transaction value of approximately $1.4 billion, including $11.15 per FPO common share in cash and the repayment or assumption of FPO debt.

FPO has agreed that it will not pay any distributions to its shareholders before the closing of the transaction. GOV's distributions to its shareholders will not be impacted by the transaction.

The transaction is subject to the approval of at least a majority of FPO's common shareholders and other customary conditions. GOV has the option to pursue the acquisition of FPO in a tender offer for all of the outstanding FPO common shares, which may decrease the time required to close the transaction. The transaction 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, CEO of First Potomac Realty Trust.