It is common practice in business for one business to acquire another, especially when both businesses are interested in mutual growth and success. This is definitely what is happening between Soft Bank and the Fortress Investment Group. The acquisition, which took place in July 2017 and became official in December 2017 has been hailed as the most strategic and forward-looking moves for both companies. Soft Bank is known for their focus on Tech Startups and their passion in helping them achieve their vision. The management and shareholders at Fortress Investment Group feel that the acquisition will give them the platform which they need to make their vision a success.
The company histories
When you think about the history shared by both of these companies, you start understanding why their merger makes so much sense. To start with, both have shown a lot of interest in branching out so that they can involve other like-minded businesses within their sphere. Then, they have shown a lot of interest in rebranding over the years. Soft bank started out as a software wholesaler a while bank and has expanded into the huge company that it is today, owning shares in more than 400 other companies. The acquisition shows that Soft Bank wants to become the largest investment company on the globe.
Why the move makes sense for Fortress
Fortress Investment Group, on the other hand, hasn’t invested in as much shapeshifting as the other company. However, since Fortress Investment Group was established by Wes Edens and Randy Nardone in 1998, it has gone ahead to invest in a number of fields including real estate business, hedge funds, and private equities. Fortress is currently managing more than $40 billion for close to 1800 investors from all over the country and despite the acquisition, it is expected that the company will continue operating the same way.
The news about a possible acquisition started making rounds a while back. Some of the top managers at Soft Bank stated that they wanted to partner with companies that had a vision and the possibility for massive growth because it would align with their vision of becoming the best investment company on the globe. Soft Bank, therefore, made an offer to Fortress, and the 3.3 billion was used to buy all of the outstanding shares from the latter.
While this acquisition is still very young, there are all indicators that it is a great move for both companies involved. Soft Bank gets to expand their investment Portfolio while Fortress Group gets the global stage they needed to advance their agenda.