SoftBank has agreed to acquire data center investment firm DigitalBridge for $4 billion, positioning the deal as part of its efforts to expand infrastructure capacity needed for artificial intelligence development.
Deal Structure And Timeline
The transaction will see SoftBank purchase all outstanding common shares of DigitalBridge for $16 per share in cash. SoftBank said the deal was unanimously approved by a special committee of DigitalBridge’s board of directors. The offer represents a 15% premium to DigitalBridge’s closing share price on Dec. 26, and the acquisition is expected to close in the second half of next year, according to a SoftBank statement.
Executive Commentary On AI Infrastructure
SoftBank Chief Executive Officer and Chairman Masayoshi Son said the acquisition would strengthen the foundation for next-generation AI data centers and support the company’s objective of becoming a provider of what he described as “Artificial Super Intelligence.” Son said the global expansion of AI is increasing demand for computing capacity, connectivity, power supply, and scalable infrastructure.
Market Reaction And Reporting
Shares of DigitalBridge rose about 10% following the announcement. The stock had previously climbed as much as 50% after Bloomberg reported that a deal could be imminent.
DigitalBridge’s Perspective And Business Profile
DigitalBridge Chief Executive Officer Marc Ganzi said the buildout of AI-related infrastructure represents a major investment opportunity. He added that SoftBank’s financial resources and global network would allow DigitalBridge to operate with a longer-term investment horizon and support technology companies as they scale AI-related operations. DigitalBridge describes itself as a digital infrastructure investment firm and reported approximately $108 billion in assets under management as of the end of September, according to information on its website.
SoftBank Portfolio Context
The acquisition follows recent changes to SoftBank’s investment portfolio. The company sold its entire stake in U.S. chipmaker Nvidia for $5.83 billion, with SoftBank indicating the sale would help support its investment in OpenAI.
Featured image credits: Flickr
For more stories like it, click the +Follow button at the top of this page to follow us.