Acquisitions by their very nature are not new in the business world– especially when it comes to money management. An investment firm often buys another firm to expand its territories and services. However, people on the outside don’t always know why a firm might acquire another. It was certainly a valuable decision when Softbank acquired Fortress Investment Group in December 2017. The $3.3 billion deal was approved by shareholders in July but it only became official in December. At first, many people couldn’t understand why Softbank, being an internet startup and tech-focused conglomerate, would have any interest in Fortress.
Knowing the history of both companies and their backgrounds makes it clear that the deal made sense to both groups. Softbank and Fortress Investment Group share corporate philosophies of fearless innovation. They have not been afraid of breaking new ground and rebranding while branching into new fields.
Softbank started out as a PC software platform Masayoshi, founded in 1981. Today the company is involved in more than 400 different endeavors in areas of commerce. Services range from broadband, e-commerce, and tech services to fixed line communications. The acquisition of Fortress Investment Group puts them on the trajectory towards being one of the leading investment companies in the world.
Meanwhile, Fortress Investment Group has also shown willingness to be flexible and openness to change. The investment firm was founded in 1998 by Wes Edens and Randy Nardone. Real estate, hedge funds, and private equity investment were the core businesses of the firm. The group now manages more than $40 billion assets for 1750 institutional and private investors around the globe.
The $3.3 billion acquisition deal gave Softbank all the outstanding shares of Fortress but it will not hand over the daily operations of the company just yet. Fortress Investment Group will continue to operate as before and its principal officers will remain in office to oversee the firm. Both companies hope that the deal will improve global reputations. Their positions as world-class investment firms in the short-term will also be upheld by the deal.
Their LinkedIn Profile: https://www.linkedin.com/company/fortress-investment-group