In the business world, it is normal for firms to acquire other firms to expand. Sometimes, these acquisitions make little or no sense to the outside world. However, to the involved parties, these acquisitions often provide a lot of value. Among the most recent acquisitions was the one undertaken by SoftBank. The firm bought Fortress Investment Group for $3.3 billion. Fortress Group’s shareholders approved the acquisition in July 2017 and made it official in December the same year.
When Masayoshi founded SoftBank in 1981, the firm mainly sold PC software. However, as the years went by, the firm bought stakes in hundreds of other companies which provide similar and different services. With its latest acquisition of Fortress Investment Group, it is undoubtedly safe to conclude that the company aims at becoming one of the world’s biggest investment companies. Learn more about Peter Briger at cnas.org
Fortress Investment, on the other hand, has shown its willingness to remain competitive in the investment market. The firm, under its Principal Peter Briger, has performed well in the real estate, private equity investments, and hedge funds markets. Currently, the firm oversees assets worth more than $40 billion across the world. Despite being bought, the company will continue its operations in the same way as before.
Even though talks about the acquisition started a while back, SoftBank’s search for a firm to buy started two years before the acquisition. The firm started its hunt for a company to buy and one that would help SoftBank become a global investment firm. As such, SoftBank’s investors needed an institutionalized structure that would allow important investment activities like compliance and trading.
Softbank spent $3.3 billion in buying Fortress Investment Group. The company now owns all of Fortress Investment’s outstanding shares. Despite this, Softbank will not control Fortress’ daily operations. Also, Fortress will retain all its principals such as the Principal and Co-Chairman of the Board of Directors, Peter Briger. Issuing their comments on the acquisition of their company, Wes Edens and Peter Briger stated that the acquisition would help SoftBank achieve its vision and goals. Peter Briger added that SoftBank would be beneficial to the private equity company.