The shocking news about the sudden acquisition of Fortress Investment Group by SoftBank Corporation was not taken easily by the public. People felt like the company had lost its direction and maybe it was on the brink of collapsing. However, one of the able CEOs of Fortress Group, Mr Peter Briger came into the public eye to shed light on the investors and the watching public about the acquisition transaction. He explained that the move by Fortress Investment Group to get purchased by SoftBank was the most strategic decision and the company was expecting to reap a lot of benefits from the acquisition.
First, Fortress has been in the field of finance and debt securities. This has made it quite prominent and enabled the company to acquire vast proficiency in the management of investors’ assets. On the other hand, SoftBank has been engaging in the telecommunication, transport and technology sectors. This will be an advantage to Fortress Investment Group because it would be able to diversify its investment from just managing securities as the only source of funds. Fortress Group will also leverage the wide customer base of SoftBank which is a multinational organization with clients from all over the world.
This acquisition transaction saw the acquirer, which is the SoftBank, spend a total of $3.3 billion. The whole of the transaction was cash-based, and so the shareholders of Fortress Group got all the proceeds in cash. On the other hand, the possession of all the outstanding shares that previously belonged to Fortress was immediately transferred to SoftBank and all its associates that it fully owns. The acquisition, however, didn’t take place just as a surprise. It was a well-thought decision between the co-principals and the shareholders that saw them agree that it would be viable enough if they engaged in the business relation.
What followed was the delisting of all the common stock of Fortress Investment Group from the New York Stock Exchange, and they stopped trading immediately. The beauty of this acquisition is that the leadership of Fortress remained intact. Peter Briger, Randal Nardone, and Wes Edens remain the heads of operations of Fortress as it operates independently under SoftBank.
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