Fortress Acquisition to SoftBank
On 27 December 2017, SoftBank Group announced that it had completed the acquisition of New York-based investment firm known as Fortress Investment Group. Soft Bank completed the acquisition in cash worth $ 3.3 billion. After the closure of the transaction, Softbank now owns all the outstanding shares from Fortress Investment. The transaction came, after all, the satisfaction of all conditions pertaining to the closing of the deal. The conditions included Fortress shareholders’ approval of the deal on 12 July 2017 as well receipts of approvals from relevant regulatory institutions. After the acquisition, all the outstanding shares for Fortress Class A will receive a cash right of $8.08 per share. Fortress common stock ceased to trade on New York Stock Exchange. Further, Fortress financial reports will now appear on the consolidated Soft Bank financial statements after the merger date on 27 December 2017. Soft Bank will also provide details of the impact of consolidation after the deal. Additionally, Fortress will continue to operate as an independent business under the group of Soft Bank and will retain its headquarters in New York. SoftBank Group is a global technology company with passion in the digital revolution. SoftBank Group comprises of the Softbank Group Corp., which is the holding company and numerous portfolio companies in a variety of industries including internet services, telecommunication, artificial intelligence (AI), energy technology, IoT, and smart robotics. SoftBank initiated the SoftBank Vision Fund in May 2017 to enable the group invests in technologies and businesses worldwide in its support for the information revolution. Masayoshi Son is currently, the CEO and the chair of SoftBank Group.
Fortress Investment Group is a global and diversified investment company with over $43.6 billion assets under its management as of 31 December 2017. It offers asset management to over 1,750 clients as well as worldwide investors ranging from real estate, credit, private, as well as permanent capital investments. The asset manager offers strategy on investments especially on undervalued assets and the illiquid credit investments. The firm has over 100 analysts to provide asset management in 14 locations around the globe. The firm has experience in providing investment during distressed cycles. The firm also provides loan sourcing services top companies. It also invests in equity investments and recapitalizations among other services. The firm is an active investor in portfolios such performing and non-performing assets or loans. The team at Fortress is also keen on investments in residential loans.
Leadership at Fortress
The firm will continue to operate under the leadership of Peter Briger, the co-CEO, and chairman and Wesley Edens, co-founder, co-CEO and Chairman even after the acquisition. The other principal is Randy Nardone, who is a director and co-founder of the asset manager.
Core Competencies of Fortress
Fortress operates its businesses in an asset-based method. It channels the equity funds to an asset investing and the firm expertise towards pricing and financing as well as own. Fortress depends on industry knowledge to invest in a variety of industries. It utilizes a team of experts who have specific expertise to top companies and institutions. Fortress uses tools to assess strategic, operational and structural challenges before engaging in an investment. Additionally, the firm also has experience in corporate mergers as well as acquisitions. Expertise in the capital markets allows the firm to access investments at low cost.