In 2017, there was an acquisition in the business world that left some investment analysts scratching their heads. SoftBank acquired Fortress Investment Group in a deal that saw Fortress shareholders receive a 39 percent premium on the share price. Those who owned Fortress shares received $8.08 per share when the deal was finalized.
SoftBank and Fortress Investment Group are very different companies. SoftBank was founded in Japan as a computer software firm. In the last few years, SoftBank has acquired several internet startup companies as well as some other tech companies. Before now, SoftBank has not sought out adding an investment company to its portfolio.
Fortress Investment Group is an alternative investment company that has over $40 billion in assets under its management. The company was the first alternative investment company to go public.
Many believe that the reason that SoftBank acquired Fortress Investment Group is due to the fact that both companies have a track record of branching out from their traditional field of business. SoftBank started acquiring telecom companies for instance. For Fortress, they have had to adapt to a number of changes within the financial services industry over the course of the last few years. They have had to diversify there lines of interest to include real estate and private equity investments.
Even though Fortress Investment Group has been acquired by SoftBank, nothing is really going to change as far as Fortress in concerned. Wes Edens, Randal Nardone and Peter Briger who are the principles of Fortress will remain actively involved with the company in their current roles. These three gentleman, along with the staff at Fortress, will continue to look for investments that will provide significant returns for their clients.
Wes Edens of Fortress has stated that he is very pleased with the SoftBank acquisition, and he is pleased that Fortress is no longer a publicly traded company. For him, it will mean not having to discuss the company’s earnings when quarterly earnings reports are issued.