SoftBank Group will acquire digital infrastructure investor DigitalBridge Group in a deal valued at $4 billion, the companies said on Monday, as the Japanese investment firm looks to deepen its AI-related portfolio.
The acquisition would expand SoftBank’s exposure to digital infrastructure as the Japanese conglomerate is positioning its portfolio to focus on artificial intelligence.
DigitalBridge shares rose about 9.7% to $15.27 on Monday, following a 45% rise earlier this month after Bloomberg News first reported the acquisition talks.
The $16 per share offer represents a 15% premium over DigitalBridge’s closing price on Friday and values the company at $2.92 billion, with the deal expected to close in the second half of next year.
SoftBank’s billionaire founder Masayoshi Son is seeking to capitalize on surging demand for the computing capacity that underpins artificial intelligence applications.
The acquisition “is certainly a milestone in solving critical infrastructure issues,” said Jacob Yahiayan, CEO at DigitalBridge investor Urban Logistic Advisory Services, but noted SoftBank is still far from controlling 10% of the global hardware- and software-as-a-service market.
DigitalBridge invests in digital infrastructure sectors such as data centers, cell towers, fiber networks, small-cell systems and edge infrastructure, with a portfolio including companies such as Vantage Data Centers, Zayo, Switch, and AtlasEdge.
Founded in 1991 as real estate-focused Colony Capital, the firm pivoted under CEO Marc Ganzi into digital infrastructure and rebranded as DigitalBridge in 2021 after shedding most of its legacy property assets.
Ganzi will continue leading DigitalBridge as a separately managed platform, the companies said.
As of September 30, DigitalBridge managed around $108 billion in assets, making it one of the largest dedicated investors in the digital ecosystem.
The company, along with OpenAI, Oracle and Abu Dhabi-based tech investor MGX, is investing billions of dollars in the Stargate project, a large-scale computing and infrastructure initiative aimed at supporting advanced AI development.
OpenAI, Oracle, and SoftBank said in September they plan to build five new computing sites across Texas, New Mexico, and Ohio, which are expected to have a combined power capacity of about seven gigawatts when in operation.
—Akash Sriram and Mihika Sharma, Reuters