There is a lot that takes place in the world of business. There are those who wish to expand their operations, and they are forced to acquire other organizations to attain that goal. On the other hand, they are those that are closing some of their activities to focus on a different field. All these are things common in the business world. However, there are those acquisitions that take place that make the people outside the business world wonder. Some organizations go out of their ways to acquire other organization that are outside their industry. For instance, the acquisition of Fortress Investment Group by SoftBank has let many wondering what SoftBank’s motive is.
SoftBank has acquired Fortress Investment group with a sum of $3.3 billion. The deal just came to an end in December 2017 after the Fortress shareholders approved it. What most people don’t understand is what an international organization that deals with tech and internet industry would consider Fortress as an organization to acquire.
When one looks at the two organizations and their histories, they will understand why such a deal took place. These companies on their own have always sought after new areas to expand into. By the time SoftBank came into existence in 1981, the organization was focusing on PC software. At the moment, the company concentrates on tech companies having stakes in over 400 firms that offer different services like e-commerce, broadband, internet, tech services, fixed-line telecommunications and others. With the company acquiring Fortress Investment Group, it shows that SoftBank wants to get into a different direction of business. To know more about the company click here.
When it comes to Fortress Investment Group, the organization has been around for more than 20 years. The company has always been ready to take up complex challenged to remain viable in the market as well as maintaining its competitive advantage. The company is based in New York and was founded by Randal Nardone, the organization’s chief executive officer and Wes Edes, the co-chair. Fortress concentrates on businesses to do with hedge funds, private equity investments, and real estate. There is about assets worth $40 billion under the company’s management from 1750 institutional customers and private investors.
Fortress investment will be controlling all its operation despite the acquisition as well as having its headquarters remaining in New York. This to many looks like an acquisition just by name but SoftBank had to agree to these terms to acquire Fortress Group.