The Fortress Investment Group was acquired by SoftBank in 2017. In the deal worth 3.3 billion dollars the bank acquired the group in its entirety, and as such, the group (FIG) will no longer be listed on the New York Stock Exchange. They were in fact delisted immediately following the completion of the acquisition. The Fortress Investment Group started in 1998 has over the years grown to manage more than 40 billion dollars as per the time of acquisition. It had been speculated for the last two years that SoftBank had had an interest in the group for a long time. The group was looking for an investment vehicle that would guide its investment strategy in the country. The bank that started as a software vendor has been growing and diversifying its portfolio away from technology where it has been known to make most of its deals. They were keen to venture out, and they understood that Fortress would be a good area to start, and as such, they were keen to get them despite the obstacles. Once shareholders approved the acquisition, which offered them a forty percent premium per share they went ahead and requested for approval from the other relevant agencies in the United States. The deal was approved, but they had to make a number of concessions that entailed them leaving the day to day running of the group to the existing management. SoftBank was willing to accept these terms as they already knew the team’s capabilities having steered its operations for the last twenty years and achieved so much over those years. The partners and principals would, in turn, continue to reinvest profits earned to continue to strengthen the financial position of the group.
The Fortress Investment Group has made a number of investments since it was acquired which include a 20 million credit facility to iPass. This is a technology company that provides hotspots all over the world. The company was looking for a strategic partner that would use its existing patents to secure the amount. The Fortress Investment Group were coincidentally looking for the same opportunity given its focus in technology investments. The deal was secured enabling iPass to secure its balance sheet which has enabled them to focus on the increase of income generating activities. The deal saw iPass get the first ten million once the deal was agreed upon while the rest continues to be disbursed as time goes by.