Key Takeaways
- • DigitalBridge Group (NYSE: DBRG) has agreed to acquire ArcLight Capital Partners for a total transaction value of up to $1.05 billion, including a $650 million base price and up to $400 million in contingent consideration.
- • The combined platform reports more than $150 billion in combined assets, with ArcLight bringing over 70 GW of generation assets, 48,000 miles of electric and gas transmission and storage infrastructure, and more than $90 billion of enterprise value.
- • The deal is conditioned on completion of SoftBank Group's pending acquisition of DigitalBridge, and does not alter the terms of that acquisition.
- • ArcLight will operate as a separately managed business within DigitalBridge, with founder Daniel Revers becoming Vice Chairman and Angelo Acconcia continuing as Managing Partner.
- • The transaction remains subject to regulatory approvals, requisite limited partner consents, and the SoftBank Acquisition closing, with Barclays as sole committed financing provider to DigitalBridge.
Summary
DigitalBridge Group, Inc. (NYSE: DBRG), a Boca Raton-based alternative asset manager focused on digital infrastructure, announced it has entered into a definitive agreement to acquire ArcLight Capital Partners, LLC, one of North America's leading specialist investors in power and electric infrastructure. According to the company, the total transaction value is up to $1.05 billion, consisting of a base purchase price of $650 million and up to an additional $400 million in contingent consideration. The companies said combined assets across the two platforms exceed $150 billion.
ArcLight, founded in 2001, has owned, controlled, or operated more than 70 GW of generation assets and 48,000 miles of electric and gas transmission and storage infrastructure, representing more than $90 billion of enterprise value, according to the release. The firm operates one of the largest private power generation portfolios and development pipelines in North America, including an 85-person power development organization with a pipeline exceeding 15 GW.
The transaction is conditioned on the completion of the previously announced acquisition of DigitalBridge by an affiliate of SoftBank Group Corp., and will not alter the terms or consideration of that deal. The companies describe the combination as creating a platform to invest in growing demand for compute, connectivity, and power, with new investment solutions intended to draw on the expertise of both firms. Marc Ganzi, CEO of DigitalBridge, said the firms are positioned to underwrite both digital and energy infrastructure with equal depth as AI reshapes the power equation.
ArcLight will continue as a separately managed business within DigitalBridge, maintaining its investment processes, its focus on risk-adjusted returns and DPI, and its commitments to limited partners. Upon completion, Daniel Revers will serve as Vice Chairman of DigitalBridge, Angelo Acconcia will continue as Managing Partner of ArcLight, and Jake Erhard, currently a Partner, will become Senior Partner.
The transaction is subject to customary closing conditions, including required regulatory approvals, requisite limited partner consents, and completion of the SoftBank Acquisition. The merger agreement will be filed with the SEC. Barclays is financial advisor and sole committed financing provider to DigitalBridge, Morgan Stanley is financial advisor to ArcLight, and Kirkland & Ellis is ArcLight's legal counsel.
ArcLight, founded in 2001, has owned, controlled, or operated more than 70 GW of generation assets and 48,000 miles of electric and gas transmission and storage infrastructure, representing more than $90 billion of enterprise value, according to the release. The firm operates one of the largest private power generation portfolios and development pipelines in North America, including an 85-person power development organization with a pipeline exceeding 15 GW.
The transaction is conditioned on the completion of the previously announced acquisition of DigitalBridge by an affiliate of SoftBank Group Corp., and will not alter the terms or consideration of that deal. The companies describe the combination as creating a platform to invest in growing demand for compute, connectivity, and power, with new investment solutions intended to draw on the expertise of both firms. Marc Ganzi, CEO of DigitalBridge, said the firms are positioned to underwrite both digital and energy infrastructure with equal depth as AI reshapes the power equation.
ArcLight will continue as a separately managed business within DigitalBridge, maintaining its investment processes, its focus on risk-adjusted returns and DPI, and its commitments to limited partners. Upon completion, Daniel Revers will serve as Vice Chairman of DigitalBridge, Angelo Acconcia will continue as Managing Partner of ArcLight, and Jake Erhard, currently a Partner, will become Senior Partner.
The transaction is subject to customary closing conditions, including required regulatory approvals, requisite limited partner consents, and completion of the SoftBank Acquisition. The merger agreement will be filed with the SEC. Barclays is financial advisor and sole committed financing provider to DigitalBridge, Morgan Stanley is financial advisor to ArcLight, and Kirkland & Ellis is ArcLight's legal counsel.
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