An In-Depth Look at the Benefits That Softbank And Fortress Investment Group Accrued From Their $3.3 Acquisition Deal
Ever since its inception two decades ago, Fortress Investment group has always been and still is a pacesetter. For instance, it was the first private equity company to go public during a public offering in 2007, and it’s also the first firm to go private again as it recently signed a $3.3 billion deal with Softbank.It is, however, vital to note that even though Softbank has made numerous acquisitions in the past, the Softbank-Fortress deal is somewhat unique. This is because unlike most of the startups it has invested in or acquired in the past, it has no control of Fortress’s assets management, which are estimated to be worth over forty billion. What makes this acquisition, even more, special is that despite paying such a hefty price, Softbank still had to invest approximately $100 million into the United States, as well as pay a 39% premium to Fortress’s share price.
It also had to wait for a while until some of its transactions were settled for the deal to see the light of the day.So why would a prominent company such as Softbank go to such lengths? According to experts, the move by the Japanese giant is not just for prestige, but is all about enhancing in-house operations, and as such to create a single business giant with arms in tech, communication, and finance.With that said and done, how will Fortress Investment group benefit from acquisition? Well, before the acquisition, Fortress Investment group had been suffering from undervalued shares in the public markets for quite a while and as such, wanted to shift back to the private arena. By accepting the acquisition deal, Fortress was not only able to go private again but was also able to get a string of partners from Asia through Softbank.
About Fortress Investment Group
Fortress Investment Group was established in 1998. Ever since its inception, the firm has been doing tremendously well and this can be attributed to the fact that its principals were all working in the finance sector before setting up the firm. Today, it oversees assets worth over $40.3 billion, and has a client base of over 1700 investors
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