SoftBank to pay $4 billion for data center firm DigitalBridge

Core Viewpoint - SoftBank Group Corp. has agreed to acquire DigitalBridge Group Inc. for $4 billion, including debt, as part of its strategy to invest in digital infrastructure driven by the AI boom [1][2]. Group 1: Acquisition Details - The acquisition involves a cash payment of $16 per share for DigitalBridge, confirming earlier reports [1]. - The deal represents a 15% premium over DigitalBridge's closing share price on December 26 [4]. - The transaction is expected to close in the second half of 2026, pending regulatory approvals [4]. Group 2: Market Context - There has been a surge in demand for digital infrastructure, leading to significant transactions in the sector, including BlackRock's $40 billion purchase of Aligned Data Centers and Oracle's agreement to supply OpenAI with computing power valued at up to $300 billion [3]. - DigitalBridge is one of the largest investment firms in digital infrastructure, managing approximately $108 billion in assets as of the end of September [3]. Group 3: Market Reaction - DigitalBridge shares rose over 9.7% shortly after the acquisition announcement, trading slightly below the sale price [4]. - Prior to the announcement, shares of DigitalBridge had increased by 45% on December 5, when acquisition talks were first reported, with a market value of about $2.5 billion [5]. Group 4: Strategic Implications - The acquisition will enhance SoftBank's relationships with investors interested in the data center industry [6]. - DigitalBridge's portfolio includes several digital infrastructure operators, such as AIMS, AtlasEdge, DataBank, Switch Inc., Vantage Data Centers, and Yondr Group [6]. - SoftBank is also exploring a potential acquisition of Switch, which is valued at around $50 billion, including debt [7].