In the business realm, acquisitions in most cases make a lot of sense. For instance, investment organizations frequently purchase other firms that deal with investment to continue expanding and growing their portfolios bases. However, acquisitions make less sense to those who are not part of it, but to the involved parties, it provides a great deal and value. That is without a doubt the case with regards to Fortress Investment Group acquisition by SoftBank. The 3.3 billion dollars agreement that was affirmed by the shareholders of Fortress in 2017 July became official in 2017 December. The puzzle that surrounds this purchase is why a company like SoftBank, which concentrates on internet startups and tech would decide to acquire an investment firm like Fortress.
The deal amongst Fortress Investment Group and SoftBank bodes well when you look into the histories of both organizations. Both companies have been reliably searching for new territories to venture into. The two organizations have persistently demonstrated enthusiasm for rebranding their businesses for quite a long time. SoftBank was established in 1981 by Masayoshi Son as a wholesaler of PC software. Currently, the organization has stakes in over four hundred firms providing an assortment of administrations, including tech-services, broadband, internet, fixed-line telecommunication, and e-commerce. Through purchasing Fortress, SoftBank has strongly shown its interests of finally being among the most significant companies dealing with investment around the globe.
Fortress Investment Group has always demonstrated its readiness to change and adapt in order to remain aggressive in the market. In 1998 Fortress Investment Group was established by co-chair Wes Edens and Randy Nardone the CEO in the city of New York. Over the years the company has developed itself around investment in private equity, real estate and in hedge funds. Today, the firm oversees over forty billion dollars of resources, and it is relied upon to keep on working that way. A team of investors was looking for a firm to purchase, which would enable SoftBank to move in its real direction of turning into the best international investment organization. The team realized for that to come to pass they needed a structured institution, the one that would encourage essential venture exercises like compliance, investor relations, and trading. Fortress turned out to be that firm. Fortress will keep on working as before, and its executives will continue serving on the board of the company. By purchasing Fortress, Softbank looks to accomplish a framework that will push it to become a renowned investment company within a short period.