SoftBank Purchases Private Equity Firm Fortress Investment Group

It was announced early in 2017 that SoftBank had plans to purchase alternative investment firm Fortress Investment Group for $3.3 billion pending approval. The proposed merger was agreed upon by a Special Committee from the Fortress Board of Directors. Shareholders of the purchased company will be receiving a 38% premium on the closing price of their stock as of Feb 13, 2017, which equals out to $6.08 per share. If the deal was not completed by the payment date, the company had plans to include a dividend of $.09 for the 4th quarter.

The principals of Fortress Investment Group will still be keeping control of the management of the company. When put to a vote, 99.7% of their shareholders that reported agreed with the terms of the merger as well as the price that they were being offered for their shares. The merger was completed late in 2017 and the company will be operating in a similar way as they have in the past as one of the terms of the agreement. According to an interview with Wes Edens, one of the Fortress principals, the day to day operations of the equity firm have not really experienced much of a change since it was purchased. He’s excited to be private as he no longer has to make calls about earnings.

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The purchase by SoftBank makes the private equity firm the first firm in the United States to be delisted from the NYSE. This development is something that the executive team at Fortress Investment Group is excited about as they believe that it will give their company more opportunity to grow. After new regulations were enforced on publicly traded companies, there were decisions that Fortress had to make to appease shareholders as opposed to strengthen their business. SoftBank is one of the world’s largest technology investors but was looking to expand their business to other sectors like finance. They enjoy the experience and expertise that Fortress Investment Group has to offer and know that it is a good part of their portfolio to take those first steps into becoming a huge name in financing.

Visit fortress.com for more details about Fortress Investment Group.