Ellington Financial terminated the merger with Great Ajax in a $173m deal.

Ellington Financial, a specialty finance company that acquires and manages mortgage-related assets, terminated the merger with Great Ajax, an externally managed real estate investment trust, in a $173m deal. The termination was approved by both companies’ boards of directors after careful consideration of the proposed merger and the progress made towards completing the proposed merger. In addition, Ellington Financial has agreed to pay Great Ajax $16m of which $5m is payable in cash and $11m was paid as consideration for 1.7m shares of Great Ajax common stock, which were purchased at a per share price of $6.6.