Japan's Internet conglomerate SoftBank (9984.Japan/SFTBY) has agreed to buy US private equity giant Fortress Investments (FIG) for about $3.3 billion in cash.
SoftBank will be paying 8.08 dollar per share to Fortress, which is 39 percent more than the closing price of Fortress as observed on 13th. Fortress' top management such as Pete Briger, Wes Edens and Randy Nardone will stay on.
The purchase of Fortress Investment, which is expected to close during the second half of 2017, is part of the expansion strategy of the Japanese company, which believes the acquisition will contribute to its long term growth. Fortress was founded in 1998 and went public in 2007 in a $634.3 million IPO, debuting at $18.50 a share.
It may seem odd for a technology company to purchase an investment firm but being unpredictable has always been a trait of Masayoshi Son, the CEO of SoftBank.
The deal was announced by New York-based Fortress and SoftBank Group today. These three control 34.99% of Fortress Investment Group LLC's voting stock. Son promised to Trump to invest $50 billion in USA startups to create 50,000 jobs.
"SoftBank is an extraordinary company that has thrived under the visionary leadership of Masayoshi Son", said Fortress Co-Chairmen Pete Briger and Wes Edens. "We anticipate substantial benefits for our investors and business as a whole, and we have never been more optimistic about our prospects going forward".
SoftBank's acquisition is aimed at bringing investment talent in-house, a company spokeswoman said. However, the deal is subject to approvals by Fortress shareholders, certain regulatory approvals and other customary closing conditions. Nizar Al-Bassam and Dalinc Ariburnu of FAB Partners arranged the Fortress transaction and are to continue to advise Softbank with respect to the firm.