Fortress Investment Group, an authority in the investment management industry, was acquired by SoftBank in a deal worth $3.3 billion. While announcing the deal, the two companies said that SoftBank had agreed to remain hands-off in the operations of the new acquisition. This agreement means that even though there is an acquisition, there will be little change in the way Fortress works. This news was a surprise even to the most popular financial analysts because they did not see it happening. Now that it is in place, what remains to be seen is how it will impact on the two companies and their growth in the coming years. Read more on https://www.businesswire.com/news/home/20171227005358/en/SoftBank-Group-Completes-Acquisition-Fortress-Investment-Group
A win-win situation
Observers say that the deal is likely to be good news for both parties. Over the years, Fortress investment group has been known to thrive when it is allowed space to conduct its own business. The company prefers to chatter its path and make all the major management decisions without any interference. On the other hand, SoftBank is always looking for new partnerships that will help it to tap into new markets. The fact that they have come to an agreement that allows them to work independently is an indication that both companies are likely to thrive under the new arrangement.
The backgrounds of the two companies
Looking at the two companies that are at the center of this acquisition, you can see why they had to work together. On the one hand, there is SoftBank, a company that has been operational for almost four decades. It has moved from being a wholesaler of computer hardware in 1981 to computer publishing, acquisition of Yahoo, and a global player in various industries. Fortress Investment Group, on the other hand, was established in 1998 and has more than two years of operational experience in the asset management industry. It manages assets belonging to more than 1,750 customers across the globe making it one of the biggest companies in its niche.
Considering the amount that SoftBank had to part with to acquire Fortress Investment Group, it remains to be seen how the deal will roll out. One thing that is for sure is that the two firms will have to change their operational style to meet the new challenges. Visit linkedin.com