Japan-based SoftBank has agreed to acquire US investment management firm Fortress Investment for about $3.3bn.
Established in 1998, Fortress manages assets on behalf of more than 1,750 institutional clients and private investors globally.
The assets are managed across a range of private equity, credit, real estate and traditional asset management strategies.
The company employs 1,100 people and had $70.1bn in assets under management as of 30 September 2016.
SoftBank Group chairman and CEO Masayoshi Son said: “Fortress's excellent track record speaks for itself, and we look forward to benefitting from its leadership, broad-based expertise and world-class investment platform.
“For SoftBank, this opportunity will immediately help expand our group capabilities, and, alongside our soon-to-be-established SoftBank Vision Fund platform, will accelerate our SoftBank 2.0 transformation strategy of bold, disciplined investment and world class execution to drive sustainable long-term growth.”
Fortress will run under the Japanese conglomerate as an independent entity with headquarters to remain intact in New York. SoftBank will look after its leadership, business model, brand and personnel among other things.
Fortress Co-Chairmen Pete Briger and Wes Edens said: “We join a company with tremendous scale and resources, and a culture completely aligned with our focus on performance, service and innovation. We anticipate substantial benefits for our investors and business as a whole, and we have never been more optimistic about our prospects going forward.”
The American firm will retain its principals Pete Briger, Wes Edens and Randy Nardone to continue leading it.
Subject to approval from the shareholders, regulatory approvals and other mandatory closing conditions, the merger deal is likely to be completed in the second half of the year.
Image: Fortress Investment to merge with SoftBank in $3.3bn deal. Photo: courtesy of stockimages/Freedigitalphotos.net.