In the investment industry, acquisitions are common. This is because investment firms are always looking for ways to grow and expand in a logical way. Acquisitions are more beneficial to the two parties involved. In a recent case, SoftBank acquired Fortress Investment Group in a deal worth $3.3 billion which became official in 2017. However, it is not clear to many people why a technology company like SoftBank which would be interested in an investment firm like fortress.
In a deeper look, this deal suits the two parties.SoftBank Group Completes Acquisition of Fortress Investment Group. This is clear when you look at their histories. SoftBank has always been looking for new areas to expand to. Hence, it has ventured into new areas in tech and that has seen it acquire over 500 tech companies. Fortress Investment Group has also been working to grow and expand to new areas. In the acquisition deal, it is clear that SoftBank has an intention of being the world’s largest investment firm.
Founded in 1981, Fortress Investment Group has always been open to change and in their expansion endeavors, they have always adapted easily to remain competitive. Today, the investment firm manages assets worth over $40 billion on behalf of over 1500 investors and clients worldwide.
SoftBank started its journey to look for an investment firm about two years ago. This was in line with its goal to become a global investment firm. It went ahead to put strategies in place which would help them facilitate important investment activities.
In the $3.3 billion acquisition deal, SoftBank now owns Fortress Investment Group wholly. However, Fortress will continue operating as normal. This deal is a game changer and it will definitely change the development direction SoftBank will take. The acquisition will help SoftBank forge forward easily towards its goals.
On the other hand, the deal went down well with Fortress Investment Group. It is claimed that it is in good terms with the fact that it is now not going to be traded publicly. According to Wes Edens, he is excited about the cause the firm has taken to be private. Wes Edens and his fellow co-chair believes that SoftBank is an outspoken company and under the able leadership of Masayoshi Son, it has really performed well in the market.