By Akash Sriram Dec 29 (Reuters) - 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 earl ...

Core Insights - DigitalBridge Group, Inc. (DBRG) is a global digital infrastructure investment firm focusing on data centers, cell towers, and fiber networks [1] - DBRG's financial performance shows a Return on Invested Capital (ROIC) of 9.30% and a Weighted Average Cost of Capital (WACC) of 10.97%, resulting in a ROIC to WACC ratio of 0.85, indicating inefficiencies in capital utilization [2][6] Comparative Analysis - BrightSpire Capital, Inc. (BRSP) exhibits strong capital efficiency with a ROIC of 26.94% and a WACC of 5.17%, leading to a ROIC to WACC ratio of 5.21, indicating effective value creation [3][6] - Zurn Elkay Water Solutions Corporation (ZWS) shows effective capital utilization with a ROIC of 8.93% and a WACC of 7.45%, resulting in a ROIC to WACC ratio of 1.20, suggesting returns that exceed its cost of capital [4][6] Challenges in the Industry - Alignment Healthcare, Inc. (ALHC) has a ROIC of 0.60% and a WACC of 9.03%, resulting in a low ROIC to WACC ratio of 0.07, indicating significant inefficiencies [5] - Hayward Holdings, Inc. (HAYW) has a ROIC of 6.59% and a WACC of 8.23%, leading to a ratio of 0.80, also indicating less efficient capital use [5]

Core Insights - Portolan Capital Management increased its stake in DigitalBridge Group by nearly 2.4 million shares, raising its total holdings to approximately 5.5 million shares valued at about $64 million as of September 30 [2][3][6] - DigitalBridge Group's shares have appreciated by about 18% over the past year, slightly outperforming the S&P 500's gain of 16.5% during the same period [4] - The company reported a revenue of $86.1 million and a net income of $12.8 million for the trailing twelve months [5] Investment Overview - Portolan Capital's investment in DigitalBridge now represents 3.5% of its reported U.S. equity assets under management (AUM) [4][6] - DigitalBridge specializes in digital infrastructure assets, including cell towers, data centers, fiber, small cells, and edge infrastructure [8][12] - The company generated $94 million in fee revenue in the third quarter, reflecting a 22% year-over-year increase, while fee-related earnings rose by 43% to $37.3 million [10] Market Position - DigitalBridge's fee-earning equity under management reached $40.7 billion, a 19% increase year-over-year, driven by organic fundraising and co-investment activities [10] - The company's strategic positioning in digital infrastructure is viewed as a structural growth opportunity rather than a speculative investment, with a measured approach to asset allocation [9][11]

Core Viewpoint - InfraBridge has entered into a binding agreement to sell a 51% stake in a newly formed holding company that owns 100% of Leeds Bradford Airport and 49% of Newcastle International Airport to Aena, valuing the stake at approximately GBP 270 million [1][2][4]. Group 1: Transaction Details - The transaction is subject to customary conditions, including regulatory approvals, and will be completed once all conditions are satisfied [2][10]. - Leeds Bradford Airport served approximately 4.3 million passengers in the last financial year ending March 2025, playing a critical role in regional connectivity and economic activity [2][3]. - Newcastle International Airport welcomed 5.2 million passengers in the last financial year ending December 2024, with services from 16 airlines to over 80 direct destinations [3]. Group 2: Strategic Implications - The agreement reflects the strong performance and long-term potential of both airports, with InfraBridge expressing excitement about future growth prospects [4]. - Aena's Chairman and CEO highlighted this operation as a significant step in Aena's commitment to expanding in markets with great potential, such as the UK, where it already has experience with Luton Airport [5]. - The transaction strengthens the long-term strategic partnership between InfraBridge and Aena, building on their existing collaboration in UK airport assets [4][5]. Group 3: Company Backgrounds - InfraBridge is a diversified middle-market infrastructure manager focused on digital infrastructure, transport, logistics, and energy transition, managing USD 108 billion in assets [6]. - Aena operates a network of 46 airports in Spain and has international operations, including Luton Airport in London and 17 airports in Brazil, managing 20% of Brazilian air traffic [7][8].

Group 1 - DigitalBridge Group, Inc. (DBRG) is rumored to be considering taking a company heavily invested in AI private to support its long-term investment strategy [1] - The company focuses on a long-term investment horizon, typically between 5 to 10 years, and emphasizes a simple investment approach [1] - The investment portfolio is suggested to include a mix of growth, value, and dividend-paying stocks, with a tendency to prioritize value investments [1]

Core Viewpoint - DigitalBridge's significant leasing activity and its control over power resources position it as a critical player in the AI infrastructure market, attracting interest from major investors like SoftBank [1][2][3][13] Company Performance - In Q3 2025, DigitalBridge leased a record 2.6 GW of data center capacity, representing about one-third of the U.S. hyperscale leasing market [1] - The company's Q3 GAAP revenue was reported at $3.8 million, but this figure was skewed by a $120.2 million non-cash accounting item, indicating stronger underlying performance [7] - Fee-Related Earnings (FRE) grew by 43% year-over-year, showcasing the company's ability to generate stable, recurring profits [8] Market Reaction - On December 5, shares of DigitalBridge surged by 46%, closing at $14.20, driven by reports of SoftBank's advanced acquisition talks [3][4] - The stock's valuation has been significantly impacted by the takeover interest, highlighting a shift in market perception regarding the company's value [4] Strategic Importance - DigitalBridge controls 20.9 GW of power across its global assets, providing a competitive advantage in an industry where energy access is critical [2][5] - The potential acquisition by SoftBank is seen as an acceleration strategy to gain immediate access to essential infrastructure for AI development [5] Future Scenarios for Shareholders - Scenario 1: If the acquisition succeeds, shareholders could see an immediate premium, with the stock price still below the rumored takeout range [11] - Scenario 2: If the acquisition does not materialize, the attention from SoftBank could lead to a re-evaluation of DigitalBridge's fundamentals and attract other potential buyers [12]

Group 1 - DigitalBridge (DBRG) experienced a significant increase of 33% following reports that Softbank (OTCPK:SFTBY) is in discussions to acquire the firm [2] - ITT (ITT) has finalized a definitive agreement with Lone Star [2]

Core Insights - The biggest financial gainers this week were led by DigitalBridge Group, an alternative asset manager currently in takeover talks [2] - The largest financial loser was a bitcoin accumulation platform associated with the Trump family [2] Company Performance - DigitalBridge Group (DBRG) experienced the highest rise among financial stocks, indicating strong market interest and potential growth opportunities [2] - The Trump family-tied bitcoin platform faced significant losses, highlighting potential risks in the cryptocurrency sector [2]

Core Viewpoint - DigitalBridge Group Inc. (NYSE:DBRG) has seen a significant increase in its stock price, rising by 45.4% week-on-week, driven by acquisition interest from SoftBank Group [1][3]. Group 1: Company Overview - DigitalBridge Group Inc. is an investment company focused on digital infrastructure, managing assets worth $108 billion as of September 2025 [3]. - The company holds substantial stakes in various firms, including Vantage Data Center, Yondr Group, AtlasEdge, DataBank, Switch, and AIMS [3]. Group 2: Acquisition Talks - Reports indicate that DigitalBridge and SoftBank are in discussions for a potential merger, as SoftBank aims to enhance its presence in the growing artificial intelligence sector [2][3]. - The outcome of these negotiations is expected to be concluded soon, although a definitive deal is not assured [3]. Group 3: Market Response - Following the acquisition news, JPMorgan has reaffirmed its "overweight" rating for DigitalBridge, setting a price target of $18, which represents a 27.5% upside from its latest closing price of $14.12 [4]. Group 4: SoftBank's Broader Strategy - In addition to the potential acquisition of DigitalBridge, SoftBank is involved in a joint venture, Stargate, which plans to invest $500 billion in AI infrastructure in the US over the next four years, partnering with OpenAI, Oracle, and MGX [5].

Core Viewpoint - SoftBank Group is in discussions to acquire DigitalBridge Group Inc., aiming to enhance its digital infrastructure portfolio amid a growing demand for AI-driven services [1][2]. Group 1: Acquisition Details - SoftBank is reportedly negotiating to buy DigitalBridge and take it private, with a potential deal expected to be finalized by the end of this year [2]. - The acquisition talks could lead to an agreement in the coming weeks, although no certainty exists regarding the outcome [2]. Group 2: Market Context - Investors have invested record capital into digital infrastructure this year, anticipating that increasing power demand will elevate data centers as valuable assets [3]. - McKinsey projects that spending on AI-linked infrastructure could reach $6.7 trillion by 2030, indicating a significant market opportunity [3]. Group 3: DigitalBridge Performance - DigitalBridge shares experienced a 45% increase, marking its largest one-day gain ever, following the news of SoftBank's acquisition discussions [4]. - The stock closed at $14.12, giving DigitalBridge a market value of $2.58 billion, despite a 13% decline in its stock price earlier this year [4]. Group 4: DigitalBridge's Assets - DigitalBridge, led by CEO Marc Ganzi, had assets under management valued at $108 billion as of September, with a portfolio that includes various digital infrastructure operators [5]. Group 5: SoftBank's Strategic Moves - SoftBank, under Masayoshi Son, aims to capitalize on the rising demand for computing capacity essential for AI applications [6]. - The company announced a $500 billion project called Stargate to build data centers in the U.S., in collaboration with OpenAI, Oracle Corp., and Abu Dhabi's MGX [6]. - However, the rollout of the Stargate project has faced delays due to disagreements over data center locations [7].