Fortress Investment Group Acquisition by Softbank

Fortress Investment Group is a top investment management firm founded in 1998 in New York City. The founders are its Chief Executive Officer, Randy Nardone, and co-chair Wes Edens. The company applies its diverse experience and network to provide a diverse range of alternative investments to its over 1500 global institutional investors. Fortress Investment made history a decade ago for being the first of its kind to issue an Initial Public Offering at the New York Securities Exchange. However, the greatest news in the four decades of Fortress Investment Group operations would be in 2018. This is after a successful $3.3 Billion acquisition by Softbank.

Despite the acquisition, there is not much change in the running of the day to day activities of Fortress Investment Group. The acquisition required that Softbank would keep off the company’s asset management that amounts to $40 Billion. This means that the team at Fortress will continue managing the investments in their respective locations. Considering the firm’s expertise, this will allow the company to easily spread its wings to their global interest and this means growth for both firms which was the main reason for the acquisition. Apart from Softbank keeping off the assets of Fortress Investment Group, it was also required to pay a premium of up to 39% per share to the shareholders of the company.

This was one of the main hurdles in the acquisition process. Softbank successfully paid off the premium and the shareholders received a return of $8.08 per share. It allowed the merger to go on without pending standoff between the two companies. After signing off, Fortress Investment Group was then delisted from the New York Stock Exchange and it became the first private equity firm to be listed and then delisted at the exchange. Some of the successful projects that Fortress has been able to undertake are the Brightline and All Abroad Florida. The success of these firms continues to place the company on the map as the most innovative and successful investment firms. The merger between Softbank and Fortress Investment can only yield better returns for the two companies.

Source of the article : https://www.crunchbase.com/organization/fortress-investment-group