It is easy to question the reason why Softbank, a Japanese giant in the finance arena decided to acquire Fortress and why the latter accepted the acquisition yet, both firms are conglomerates in their lanes. Fortunately, an article posted on Fortress’s CrunchBase profile explained the reasons behind the procurement perfectly.
According to the article, the $3.3 billion deal between the two firms is incredibly business wise considering that both firms have been looking for ways to expand ever since their inception, and they have been consistently rebranding to grow themselves and broaden their scopes of business. For instance, Softbank initially dealt with the wholesale of PC software but over the years, has taken on different tasks such as e-commerce, fixed-line telecommunications, tech services and a string of many others. On the other hand, Fortress Investment Group has been expanding its wings in private equity investments, real estate, and Hedge funds, thereby becoming one of the leading firms in the mentioned areas with more than $40 billion in asset management.
In respect to this, they both have the same interests which they have achieved for years, but; working together will help them accomplish this even more. Additionally, both firms will benefit from the acquisitions. For instance, Fortress Investment group will benefit from being private again while Softbank will be one step closer to taking over wall street and becoming an investment services superpower. Even though Fortress is now under Softbank, the management remains the same. None of its operations are affected as it will operate alongside and not under or in conjunction with Softbank.
About Fortress Investment group
Fortress Investment Group is a firm specializing in asset management, real estate, and hedge funds. It has been around for more than a decade now as it was established in 1998. Thanks to its exemplary management, Fortress has grown over the years to become a trendsetter in the mentioned areas and currently oversees assets worth over $40 billion and has a client base of over 1700 investors spread across the globe. It was the first firm to go public during the NYSE in 2007, and its deal with Softbank is set to spur its growth even more.