SoftBank acquires DigitalBridge for $4B in all cash deal
Japan’s SoftBank agreed on Monday to acquire data center investment firm DigitalBridge for $4 billion, purchasing all outstanding common stock at $16 per share in cash, a 15% premium to DigitalBridge’s December 26 closing share price, after unanimous approval by a special committee of DigitalBridge’s board, with closure expected in the second half of next year, according to CNBC.
The transaction forms part of SoftBank’s artificial-intelligence initiatives. SoftBank CEO and Chairman Masayoshi Son stated that the acquisition will strengthen the foundation for next-generation AI data centers and advance the company’s vision of becoming a leading Artificial Super Intelligence platform provider. In his statement, Son added, “As AI transforms industries worldwide, we need more compute, connectivity, power, and scalable infrastructure.”
DigitalBridge shares rose about 10% following the announcement. The stock had previously climbed as much as 50% after a Bloomberg report indicated that a deal could be imminent. This agreement occurs during a global increase in demand for infrastructure supporting AI applications.
DigitalBridge CEO Marc Ganzi described the build-out of AI infrastructure as one of the most significant investment opportunities of the generation. He stated that SoftBank’s vision, capital strength, and global network will allow DigitalBridge to accelerate its mission with greater flexibility, invest with a longer-term horizon on behalf of investors, and better serve leading technology companies scaling their AI ambitions.
SoftBank recently sold its entire stake in U.S. chipmaker Nvidia for $5.83 billion. The proceeds free capital for an investment in OpenAI.
DigitalBridge positions itself as a unique digital infrastructure business. As of the end of September, the firm reported roughly $108 billion in assets under management, according to its website.