Soft Bank’s ownership of the Fortress Investment Group
Soft Bank recently announced that the firm had completed the acquisition process for the Fortress Investment Group. The acquisition completed for roughly above three billion dollars. The transaction was done when the principles and shareholders gave their approval. Each of the shareholders will receive a little above 8 billion dollars cash for every share they own. The proceeds of the merger are to be distributed according to Fortress’ outlined payment procedure. Fortress will continue to operate as an independent business under the Soft Bank and still retain its headquarters in New York.
The Fortress Investment Group
The Fortress Investment Group began operations in 1998 after it launched through the partnership of financial expert Wesley Edens, the businessman Rob Kauffman and lawyer turned financial expert Randal Nardone. With Randal as the interim then officially appointed Chief Executive Officer, Fortress expanded from a small private equity firm to dealing with debt securities, hedge funds and investments in the real estate sector. The companies under Fortress Group include the Ski Resort of Canada which was acquired by Fortress in 2006 and the Rail America Inc. that was purchased at the end of the same year. There is also the Coast Industries of Eastern Florida, the Penn National Gaming company whose acquisition was done in partnership with Center Bridge Partners, AMRESCO, Flager, Box Clever and Global Signal Inc. among many more.
The company was reported to be managing assets worth roughly 70.2 billion dollars by mid-2016. Most of Fortress’s portfolio companies like Brookdale Senior Living Inc. and Rail America were made public in the long run. In preparation for the 2010 winter Olympics, Fortress Investment Group loaned the MDG (Millennium Development Group) a significant portion of the 875 million dollars that was used to develop the athlete’s village. The village completed in 2009 with the help of further donations from the Vancouver City. When the Winter Olympics came to an end, Fortress Investment Group became the official owners of the village. The Soft Bank Group brought the acquisition deal to the table in 2014 and agreed to purchase Fortress for 3.3 billion dollars. The deal was not just tabled and dealt with instantly. The involved parties took their time with important considerations, and in this process,they spent two years mapping out the details of the acquisition until December 2017 when the deal was done.