The announcement was made in early 2017 that SoftBank Group Corp. (“SoftBank” or “SBG”) has merged with Fortress Investment Group LLC (NYSE:FIG) (“Fortress”). The deal will cost SoftBank $3.3 billion. Each shareholder from Fortress Investment Group will receive a share price that is almost 39% higher than the closing price on February 13, 2017. Fortress Investment group will continue to be led by Pete Briger, Wes Edens and Randy Nardone. Fortress will be based in New York City, and they will operate as an independent entity. SoftBank will keep the culture, branding, and business model in place that has made the company so successful. Masayoshi Son, Chairman and CEO of SoftBank, does not want to change anything that might interfere with Fortress’ record of success. Visit glassdoor.com
SoftBank will be able to bring in other investors to cover some of the costs. The merger had to be agreed upon by shareholders and other regulatory bodies. Weil, Gotshal & Manges LLP and Kirkland & Ellis LLP oversaw the legalities of the deal. J.P. Morgan Securities LLC gave financial advise for the merger. Fortress Investment Group has been in charge of private equity, credit, and real estate management since 1998. They have 1,110 employees and they are in charge of over $70 billion in assets. The SoftBank group is in the technology industry, and they focus on the development of AI, internet services, and clean technology.
Pete Briger and Wes Edens are confident that the partnership will yield profits for their shareholders as well as providing a launching pad for future success. Fortress has a reach around the globe, and it will give SoftBank a wider investment range and worldwide presence. Fortress has a team in place that is knowledgeable about very specific industry sectors, and they have a wide portfolio of investments.