SoftBank Group Corp. announced that it has reached an agreement to acquire Fortress Investment Group LLC (NYSE: FIG) in an all-cash deal of $3.3 billion.
SoftBank, which currently focuses on telecoms and technology, hopes to add investment expertise through this deal. Masayashi Son, the founder of SoftBank Group, said that the deal would “accelerate our SoftBank 2.0 transformation strategy of bold, disciplined investment and world-class execution to drive sustainable long-term growth”.
In the transaction, shareholders of Fortress Investment will receive $8.08 for each share, which represents a premium of 38.6% of the closing price on February 13. JP Morgan Securities acted as financial advisers for SoftBank, and Morgan Stanley & Co advised Fortress. Currently, SoftBank executives didn’t comment further on the transaction.
In October last year, SoftBank announced that the company is cooperating with Saudi Arabia to set up a technology fund of $100 billion. Rajeev Misra, which is a former senior executives of Fortress, runs the fund now.
Currently, Fortress Investment Group, which was founded in 1998 by Edens, Nardone and Robert Kauffman, has businesses in the fields of real estate, private equity, and hedge fund. By the end of September 2016, the company had $70 billion in investments.
In the deal with SoftBank, the three leaders of Fortress Investment, Edens, Nardone, and Briger, which was hired from Goldman Sachs in 2002, will gain a combined $1.39 billion from the acquisition by SoftBank.