Reasons Why Softbanks Acquisition of Fortress Investment Group is a Game Changer

On December 2017, Softbank made headlines around the world after completing the acquisition of Fortress. The Tokyo firm had interests in the USA alternative investment, and this was their best entry to this lucrative business. The deal was, however, the most interesting acquisition in the recent past because it gave the management team of Fortress the chance to continue working with investors in the USA and around the world. Some of the areas Fortress Investment Group will continue working on with various investors include the following.

Assets based investment continues to be the company’s number one priority over the years. In the last one decade, for example, Fortress has been the hub for the best decisions in the private equity investments, and according to the management of this company, 2019 will be a year of expansion and more investment in this important sector. Prior to the company’s investment in this niche, there was zero professionalism in this sector, and the operational structures for this niche were weak. Fortunately, Fortress Investment Group ensures that there is a professional and comprehensive approach to the evaluation of private assets and overall management.

Second, the company is synonymous with better approaches to capital markets. According to pundits, many management firms avoid this important niche primarily due to the professional requirements and volatility of capital markets. However, Fortress Investment Group has been on a journey to change this reality by injecting professionalism and more importantly expanding the range of its services. For example, the company offers services on how to manage and invest in low-risk ventures in the USA. These services complement the operations management that the company offers on various management areas within the corporate world.

Thirdly, Fortress Investment Group is the first company in the world of investment management to redesign the universal approach to mergers and acquisition. Currently, the company has the best formula on how to approach mergers and accusations regardless of the firms involved. According to the management of this firm, professionally approaching these two transitional services protects the interests of both parties. In addition, these services have made Fortress home to some of the best negotiators and evaluators.

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$55M patent purchase for HGGC

Recently, HGGC announced that it had completed the acquisition of RPX, a company that provides patent risk management services. This acquisition is a continuation of the expansion program that the company embarked on, and which has seen it sign significant deals with various companies. It comes at a time when there are many mergers and acquisitions, and therefore, you can see that they are trying to expand their base to stay ahead of the competition. With such additions, they will have access to even more markets, and that is one of the factors that will lead to revived growth.

More than 23,000 patents

Recent statistics showed that RPX had recently spent more than $2.5 billion to purchase more than 23,000 patents since its inception in 2008. It is such vibrancy that out it on the spotlight that later saw it become part of HGGC family. Looking at their performance, it is clear that they were one of the best targets for a company that is known for identifying the most viable companies to invest in. If you look at the most recent acquisitions, you will agree that they have something in common with RPX and therefore, HGGC still holds to its strategy.

The value of the purchase

According to the information for HGGC, the transaction was valued at $10.5 per share. This means that the total for the entire investment will be around $555 million. This is a huge figure, and it represents one of the biggest buyouts that the company has been involved in during the past few years. However, if you carefully look at the figures, you will agree that it was a good bargain especially when you consider the network that RPX enjoy and which will not be available to the new owners. It is a value that is likely to contribute to their success in the coming years.

HGCC also announced that after sealing this deal, they would be looking for more opportunities to expand their services. They said that their experts are always on the lookout for companies that share a common vision to their so that they can get into negotiations.