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.
