DigitalBridge to Acquire ArcLight Capital for Up to $1.05B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: seekingalpha
- Acquisition Overview: DigitalBridge Group is set to acquire ArcLight Capital Partners for up to $1.05 billion, which includes a base purchase price of $650 million and up to $400 million in contingent consideration, indicating the company's intent to expand in the power infrastructure sector.
- Transaction Conditions: The deal is contingent upon the completion of SoftBank Group's acquisition of DigitalBridge, which was agreed upon last December for an enterprise value of approximately $4 billion, reflecting SoftBank's long-term strategic support for DigitalBridge.
- Expected Asset Scale: The combined entity is projected to have over $150 billion in assets, significantly enhancing DigitalBridge's market position in power and infrastructure investments and providing a robust financial foundation for future growth.
- Market Impact Analysis: This acquisition is expected to not only broaden DigitalBridge's investment portfolio but also potentially enhance its competitiveness in the rapidly evolving power infrastructure market by integrating ArcLight's expertise and resources, thereby driving overall company performance improvements.
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Analyst Views on DBRG
Wall Street analysts forecast DBRG stock price to rise
9 Analyst Rating
2 Buy
6 Hold
1 Sell
Hold
Current: 15.700
Low
16.00
Averages
16.00
High
16.00
Current: 15.700
Low
16.00
Averages
16.00
High
16.00
About DBRG
DigitalBridge Group, Inc. is a global investment manager in digital infrastructure, deploying and managing capital across the digital ecosystem, including data centers, cell towers, fiber networks, small cells, and edge infrastructure. Its investment management platform is anchored by its value-added funds within the DigitalBridge Partners (DBP) infrastructure equity series. Its investment offerings also include core equity, credit and liquid securities. The DBP series of funds focuses on value-added digital infrastructure, investing in and building businesses across the digital infrastructure sector. Core Equity invests in digital infrastructure businesses and assets with long-duration cash flow profiles, primarily in more developed geographies, through its Strategic Assets Fund (SAF). DigitalBridge Credit is a private credit strategy that delivers credit solutions to corporate borrowers in the digital infrastructure sector globally through credit financing products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DigitalBridge to Acquire ArcLight Capital for Up to $1.05B
- Acquisition Overview: DigitalBridge Group is set to acquire ArcLight Capital Partners for up to $1.05 billion, which includes a base purchase price of $650 million and up to $400 million in contingent consideration, indicating the company's intent to expand in the power infrastructure sector.
- Transaction Conditions: The deal is contingent upon the completion of SoftBank Group's acquisition of DigitalBridge, which was agreed upon last December for an enterprise value of approximately $4 billion, reflecting SoftBank's long-term strategic support for DigitalBridge.
- Expected Asset Scale: The combined entity is projected to have over $150 billion in assets, significantly enhancing DigitalBridge's market position in power and infrastructure investments and providing a robust financial foundation for future growth.
- Market Impact Analysis: This acquisition is expected to not only broaden DigitalBridge's investment portfolio but also potentially enhance its competitiveness in the rapidly evolving power infrastructure market by integrating ArcLight's expertise and resources, thereby driving overall company performance improvements.
See More
DigitalBridge to Acquire ArcLight for Up to $1.05 Billion, Enhancing Digital Infrastructure Capabilities
- Significant Transaction Value: DigitalBridge has entered into a definitive agreement to acquire ArcLight for a total transaction value of up to $1.05 billion, which includes a base purchase price of $650 million and up to $400 million in contingent consideration, expected to significantly enhance DigitalBridge's investment capabilities in the digital infrastructure sector.
- Asset Integration Benefits: The acquisition will create a leading alternative asset management platform with combined assets exceeding $150 billion, leveraging ArcLight's expertise in power and electric infrastructure, which is anticipated to drive investments in growing demands for compute, connectivity, and power.
- Independent Operations: ArcLight will operate as a distinct business within the DigitalBridge platform, maintaining continuity in its investment processes and ensuring its commitments to limited partners remain intact, with a focus on achieving attractive risk-adjusted returns.
- Leadership Changes: Upon completion of the transaction, ArcLight's founder Daniel Revers will serve as Vice Chairman of DigitalBridge, continuing to drive the company's long-term growth strategy, while day-to-day leadership of ArcLight will remain with current Managing Partner Mr. Acconcia.
See More
DigitalBridge Acquires Equans' E-Mobility Operations
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- Strengthened Market Position: Velian will focus on providing a reliable and user-friendly charging network, further solidifying its leadership in the public charging market while expanding its influence in real estate and logistics charging sectors.
- Stable Management Team: The existing management team will remain in place and, supported by DigitalBridge and Aberdeen Investments, will work towards achieving the company's growth objectives, ensuring customers continue to receive high-quality service.
- Optimistic Investment Outlook: DigitalBridge and Aberdeen Investments stated that the decarbonization of e-mobility is a key infrastructure investment theme for the next decade, positioning Velian to play a critical role in driving sustainable growth.
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- Interest Payment Structure: The notes will have quarterly interest payments with an anticipated repayment date in June 2031, which helps the company maintain stable cash flow over the coming years to support its operational and investment strategies.
- Clear Use of Proceeds: The proceeds from this offering will be used to repay the outstanding securitization notes of the co-issuers, reflecting the company's proactive measures in optimizing its capital structure, which may lower financial costs and improve credit ratings.
- Variable Funding Notes Plan: Concurrently with the issuance of Class A-2 Notes, DigitalBridge plans to issue Series 2026-1 Secured Fund Fee Revenue Variable Funding Notes, Class A-1, allowing the company to borrow up to $100 million on a revolving basis, further enhancing its financing flexibility.
See More
DigitalBridge Prices $300 Million Bond Offering
- Bond Offering Size: DigitalBridge's subsidiaries have successfully priced a $300 million offering of Series 2026-1 6.326% Secured Fund Fee Revenue Notes, Class A-2, which is set to mature in June 2031, reflecting the company's strong financing capabilities and market confidence.
- Clear Use of Proceeds: The proceeds from this bond issuance will be used to repay existing securitization notes of the Co-Issuers, indicating a strategic intent to optimize capital structure and reduce financial costs, thereby enhancing financial stability.
- Variable Funding Notes Plan: Concurrently with the Class A-2 Notes, the issuance of Class A-1 Variable Funding Notes will allow the Co-Issuers to borrow up to $100 million on a revolving basis, further strengthening liquidity management and supporting future investment and operational needs.
- Market Outlook: Despite uncertainties surrounding the bond issuance, DigitalBridge's leading position in the digital infrastructure sector is expected to continue attracting investor interest, driving the company's long-term growth potential.
See More
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Digital Bridge Financing: Digital Bridge has secured $300 million in financing to support its operations and growth initiatives.
Purpose of Financing: The funds will be utilized to repay outstanding Series 2021-1 notes, ensuring financial stability and compliance with obligations.
See More
DigitalBridge to Acquire ArcLight Capital for Up to $1.05B
- Acquisition Overview: DigitalBridge Group is set to acquire ArcLight Capital Partners for up to $1.05 billion, which includes a base purchase price of $650 million and up to $400 million in contingent consideration, indicating the company's intent to expand in the power infrastructure sector.
- Transaction Conditions: The deal is contingent upon the completion of SoftBank Group's acquisition of DigitalBridge, which was agreed upon last December for an enterprise value of approximately $4 billion, reflecting SoftBank's long-term strategic support for DigitalBridge.
- Expected Asset Scale: The combined entity is projected to have over $150 billion in assets, significantly enhancing DigitalBridge's market position in power and infrastructure investments and providing a robust financial foundation for future growth.
- Market Impact Analysis: This acquisition is expected to not only broaden DigitalBridge's investment portfolio but also potentially enhance its competitiveness in the rapidly evolving power infrastructure market by integrating ArcLight's expertise and resources, thereby driving overall company performance improvements.
See More
DigitalBridge to Acquire ArcLight for Up to $1.05 Billion, Enhancing Digital Infrastructure Capabilities
- Significant Transaction Value: DigitalBridge has entered into a definitive agreement to acquire ArcLight for a total transaction value of up to $1.05 billion, which includes a base purchase price of $650 million and up to $400 million in contingent consideration, expected to significantly enhance DigitalBridge's investment capabilities in the digital infrastructure sector.
- Asset Integration Benefits: The acquisition will create a leading alternative asset management platform with combined assets exceeding $150 billion, leveraging ArcLight's expertise in power and electric infrastructure, which is anticipated to drive investments in growing demands for compute, connectivity, and power.
- Independent Operations: ArcLight will operate as a distinct business within the DigitalBridge platform, maintaining continuity in its investment processes and ensuring its commitments to limited partners remain intact, with a focus on achieving attractive risk-adjusted returns.
- Leadership Changes: Upon completion of the transaction, ArcLight's founder Daniel Revers will serve as Vice Chairman of DigitalBridge, continuing to drive the company's long-term growth strategy, while day-to-day leadership of ArcLight will remain with current Managing Partner Mr. Acconcia.
See More
DigitalBridge Acquires Equans' E-Mobility Operations
- Acquisition Overview: DigitalBridge and Aberdeen Investments have acquired Equans' e-mobility infrastructure operations in the Netherlands, aiming to enhance the accessibility of sustainable charging through the new brand Velian, which is expected to drive market growth.
- Strengthened Market Position: Velian will focus on providing a reliable and user-friendly charging network, further solidifying its leadership in the public charging market while expanding its influence in real estate and logistics charging sectors.
- Stable Management Team: The existing management team will remain in place and, supported by DigitalBridge and Aberdeen Investments, will work towards achieving the company's growth objectives, ensuring customers continue to receive high-quality service.
- Optimistic Investment Outlook: DigitalBridge and Aberdeen Investments stated that the decarbonization of e-mobility is a key infrastructure investment theme for the next decade, positioning Velian to play a critical role in driving sustainable growth.
See More
DigitalBridge Prices $300M Secured Fund Fee Revenue Notes Offering
- Bond Offering Size: DigitalBridge Group's subsidiaries have successfully priced a $300 million offering of Series 2026-1 6.326% Secured Fund Fee Revenue Notes, Class A-2, indicating strong market confidence in the company's financing needs and expected liquidity enhancement.
- Interest Payment Structure: The notes will have quarterly interest payments with an anticipated repayment date in June 2031, which helps the company maintain stable cash flow over the coming years to support its operational and investment strategies.
- Clear Use of Proceeds: The proceeds from this offering will be used to repay the outstanding securitization notes of the co-issuers, reflecting the company's proactive measures in optimizing its capital structure, which may lower financial costs and improve credit ratings.
- Variable Funding Notes Plan: Concurrently with the issuance of Class A-2 Notes, DigitalBridge plans to issue Series 2026-1 Secured Fund Fee Revenue Variable Funding Notes, Class A-1, allowing the company to borrow up to $100 million on a revolving basis, further enhancing its financing flexibility.
See More
DigitalBridge Prices $300 Million Bond Offering
- Bond Offering Size: DigitalBridge's subsidiaries have successfully priced a $300 million offering of Series 2026-1 6.326% Secured Fund Fee Revenue Notes, Class A-2, which is set to mature in June 2031, reflecting the company's strong financing capabilities and market confidence.
- Clear Use of Proceeds: The proceeds from this bond issuance will be used to repay existing securitization notes of the Co-Issuers, indicating a strategic intent to optimize capital structure and reduce financial costs, thereby enhancing financial stability.
- Variable Funding Notes Plan: Concurrently with the Class A-2 Notes, the issuance of Class A-1 Variable Funding Notes will allow the Co-Issuers to borrow up to $100 million on a revolving basis, further strengthening liquidity management and supporting future investment and operational needs.
- Market Outlook: Despite uncertainties surrounding the bond issuance, DigitalBridge's leading position in the digital infrastructure sector is expected to continue attracting investor interest, driving the company's long-term growth potential.
See More
DIGITALBRIDGE SECURES $300 MILLION FINANCING TO REFINANCE SERIES 2021-1 NOTES
Digital Bridge Financing: Digital Bridge has secured $300 million in financing to support its operations and growth initiatives.
Purpose of Financing: The funds will be utilized to repay outstanding Series 2021-1 notes, ensuring financial stability and compliance with obligations.
See More
