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

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

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