Japan-based SoftBank has agreed to acquire American alternative-asset manager Fortress Investment Group for about $3.3bn in cash.
Established in 1998, Fortress has $70.1bn in assets under management as of 30 September 2016. The company manages assets on behalf of more than 1,750 institutional clients and private investors worldwide.
Under the agreement, each Fortress Class A shareholder will receive $8.08 per share, which represents a premium of 38.6% to the closing price of Fortress Class A common stock on 13 February 2017.
Fortress Principals Pete Briger, Wes Edens and Randy Nardone have agreed to continue to lead the business, which will operate independently within SoftBank and will remain based in New York.
Subject to approval by Fortress shareholders, certain regulatory approvals and other customary closing conditions, the deal is expected to close in the second half of 2017.
SoftBank Group Corp chairman and CEO Masayoshi Son said: “Fortress’s excellent track record speaks for itself, and we look forward to benefitting from its leadership, broad-based expertise and world-class investment platform.
“For SoftBank, this opportunity will immediately help expand our group capabilities, and, alongside our soon-to-be-established SoftBank Vision Fund platform, will accelerate our SoftBank 2.0 transformation strategy of bold, disciplined investment and world class execution to drive sustainable long-term growth."
Commenting on the acquisition, Fortress co-chairmen Pete Briger and Wes Edens said: “We are very pleased to announce an agreement setting our business on a great path forward as part of SoftBank, while creating significant value for our shareholders. We join a company with tremendous scale and resources, and a culture completely aligned with our focus on performance, service and innovation.”