Japanese telecom giant SoftBank Group Corp. is set to acquire the US-based Fortress Investment Group LLC for approximately $3.3 billion in cash.
SoftBank earlier announced plans to make $50 billion investment in US-based companies and start-ups.
“Fortress’s excellent track record speaks for itself, and we look forward to benefitting from its leadership, broad-based expertise and world-class investment platform,” said Masayoshi Son, Chairman and CEO of SoftBank Group Corp.
SoftBank will utilize Fortress to expand its capabilities. SoftBank Vision Fund platform and SoftBank 2.0 transformation strategy will gain from the acquisition.
Fortress shareholders will receive $8.08 per share, representing a premium of 38.6 percent to the closing price of Fortress stock on February 13, 2017, and a premium of 51.2 percent to Fortress’s 3-month volume-weighted average price, excluding dividends.
In addition, Fortress shareholders may receive up to two quarterly dividends prior to the closing, each in an amount not to exceed $0.09 per share. Fortress plans to maintain its current base dividend of $0.09 per share for the fourth quarter of 2016 and, if the deal closure does not happen prior to the applicable payment date, for the first quarter of 2017.
Pete Briger, Wes Edens and Randy Nardone, the Fortress Principals, have agreed to continue to lead Fortress, and have committed to invest 50 percent of their after-tax proceeds from the transaction in Fortress-managed funds and vehicles, and in equity securities of SoftBank and SoftBank-managed funds and vehicles.
Fortress’s senior investment professionals will retain their significant participation interests in fund performance. Fortress will operate within SoftBank as an independent business headquartered in New York.
Nizar Al-Bassam and Dalinc Ariburnu of F.A.B. Partners, who arranged the transaction, will advise SoftBank with respect to Fortress.