The New York-based Fortress Investment Group, which is known for managing alternative assets in private equity, liquid hedge funds, and credit funds, was acquired by SoftBank Group Corp. The acquisition was completed in 2017 with the term of $3.3 billion in cash. With the completion of this transaction, SoftBank Group Corp. or SBG now owns all the outstanding shares of Fortress. All the demands and conditions were met in this transaction, while Softbank waved its day to ay control demand to win the deal.
SoftBank’s acquisition of Fortress is a mutual transaction which will help both of the firms to reach their goals. For years, SoftBank has been searching for a top company that will help them realize their goal to become a top global investment firm. Meanwhile, Fortress has been a firm which will adapt to any changes in the market to remain competitive. All shareholders of Fortress received $8.98 per share because of the 39% premium to the share price. This is set by FIG’s definitive proxy dated June 7, 2017. As a result of the acquisition, Fortress Investment Group was delisted in the New York Stock Exchange and has been reflected in SBG’s financial management.
Fortress Investment Group will still manage its funds which amount up to $40 billion in assets. The firm will still be led by its founders Pete Briger, Randy Nardone, and Wes Edens. Nothing will be changed from its day to day operations – its personnel, brand, business model, company culture and processes will be the same.
SBG’s chairman and CEO Masayoshi Son is confident that this acquisition will benefit the tech firm. The firm has been hunting for companies like FIG to acquire for two years. Because of its excellent track record, Son believes that Fortress Investment Group is the best option for SBG’s goals.
SoftBank Group Corp is a known tech firm that covers a lot of fields in the tech world. Its operations are focused on Information Revolution, with services spanning from advanced telecommunications, internet services, IoT, and clean energy tech.
Fortress Investment Group is an investment company that manages assets around the world. It was founded in 1998 and has been managing portfolios of over 1,750 institutional clients and private investors.