DigitalBridge to Acquire AMP Capital’s Global Infrastructure Equity Investment Management Business
Acquisition to enhance DigitalBridge’s capabilities in the complementary mid-market segment
The transaction will be immediately accretive to earnings and will increase guidance for 2022
BOCA RATON, Fla., April 28, 2022–(BUSINESS WIRE)–DigitalBridge Group, Inc. (NYSE: DBRG) today announced that an affiliate, DigitalBridge Investments, LLC (collectively “DigitalBridge”), has agreed to acquire the global investment management business in infrastructure from AMP Capital, part of its subsidiary Collimate Capital, (the “Company”) in a transaction valued at $328 million*, including upfront payments for the management platform, fund sponsor investments and retained performance fees, as well as potential contingent payments based on certain future performance thresholds. AMP Capital’s global infrastructure equity platform comprises four investment funds with $5.5 billion* in remunerative assets under management, including the 3.4 billion and the $1.4 billion Global Infrastructure Fund I (“GIF I”).
The strategic and financial benefits of the transaction include:
Enhances Full Stack Digital Infrastructure Capabilities: the business strategically fits alongside DigitalBridge’s flagship value-added digital infrastructure franchise, positioning the company to capitalize on smaller, high-return investment opportunities in the middle market.
High caliber plug-and-play investment team: The experienced investment team will operate as a separate new business unit within the DigitalBridge investment management platform, strengthening DigitalBridge’s industry-leading team of digital infrastructure professionals with a common goal of generate attractive long-term risk-adjusted returns.
Accretive transactions increase forecasts: At close, the DigitalBridge IM platform’s projected 2022 operating cost revenue (“FRE”) is expected to increase mid-term by approximately 20% compared to the previous forecast. At closing, the business is expected to be immediately accretive to DigitalBridge’s after-tax income per Class A common share.
“This transaction represents a unique opportunity to extend our leadership in digital investment management,” said Marc Ganzi, CEO of DigitalBridge. “In addition to accelerating and scaling the growth of our platform, we are building a team of high-calibre investment professionals who share our commitment to delivering strong long-term returns to investors and who have significant experience in investing in the value-added middle market infrastructure segment directly adjacent to our flagship equity business The venture will offer immediate financial benefits and growth potential as we aim to enhance our ability to achieve and exceed our short and medium term business objectives.
A supplemental investor presentation describing the key agreement and financial terms of the transaction is available in the Shareholders section of DigitalBridge’s website and will be provided as an attachment to a current Form 8-K report to the Securities and United States Exchange Commission. The transaction is expected to close before the end of the year, subject to customary regulatory approvals.
About Digital Bridge
DigitalBridge (NYSE: DBRG) is a global leader in digital infrastructure. With a legacy of more than 25 years of investing in and operating businesses across the digital ecosystem, including cell towers, data centers, fiber, small cells and edge infrastructure, the he DigitalBridge team manages a $45 billion portfolio of digital infrastructure assets on behalf of its limited partners and shareholders. Based in Boca Raton, DigitalBridge has key offices in New York, Los Angeles, London and Singapore. For more information visit: www.digitalbridge.com
Caution Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions regarding matters that are not historical facts. In some cases, you can identify forward-looking statements by using forward-looking words such as “may”, “will”, “should”, “expect”, “intend”, “anticipate”, “anticipate ‘, ‘believes’, ‘estimates’, ‘predicts’ or ‘potential’ or the negative form of such words and phrases or similar words or phrases which are predictions or indicate future events or trends and which do not relate solely historical matters.Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and may cause actual results to differ materially from those expressed in any forward-looking statement. Factors that could cause such a difference include, but are not limited to, whether the company’s acquisition of the business will be completed on time and on the terms anticipated or not at all, whether the company will realize any of the anticipated benefits of the transaction, whether the acquired funds will realize returns and the business will continue to grow at the expected rate, and other risks and uncertainties, including those detailed in DigitalBridge’s Annual Report on Form 10 -K for the fiscal year ended December 31, 2021, and its other reports filed from time to time with the United States Securities and Exchange Commission (“SEC”). All forward-looking statements reflect DigitalBridge’s good faith beliefs, assumptions and expectations, but are not guarantees of future performance. DigitalBridge cautions investors not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of this press release. DigitalBridge is under no obligation to update any such forward-looking statements after the date of this press release, or to conform any prior statements to actual results or revised expectations, and DigitalBridge does not intend to do so.
* Assumes an AUD/USD exchange rate of 0.7162
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220426005796/en/
Commercial and Strategy Director
Managing Director, Head of Public Relations with Investors
Jon Keehner / Aura Reinhard
Joele Frank, Wilkinson Brimmer Katcher