DigitalBridge is acquiring North American power and electric infrastructure specialist ArcLight Capital Partners in a deal valued at up to $1.05bn (€904m).
The NYSE-listed global digital infrastructure manager is offering to pay $650m, plus up to an additional $400m in contingent consideration, to combine with ArcLight and create an alternative asset manager with more than $150bn in combined assets.
Established in 2001, ArcLight has managed over 70GW of generation assets and 48,000 miles of power and gas infrastructure, representing an enterprise value exceeding $90bn. Its North American portfolio includes an 85-person power development platform with a pipeline of more than 15GW.
Upon completion of the transaction, ArcLight will operate as a separately managed business within the DigitalBridge platform, with founder Daniel Revers becoming vice-chairman of DigitalBridge.
Angelo Acconcia will continue to serve as managing partner of ArcLight, while Jake Erhard, currently a partner at the firm, will be promoted to senior partner.
DigitalBridge said the acquisition of ArcLight is conditional upon the completion of its own recently announced $4bn takeover by Japanese multinational investment firm SoftBank, and will not alter or affect the terms or consideration of that transaction.
Marc Ganzi, CEO of DigitalBridge, said: “Digital infrastructure is a specialist business, and ArcLight has operated with that same philosophy in power infrastructure for more than two decades, building deep expertise across power, renewables, batteries, transmission, and midstream infrastructure.
“The shared conviction that specialisation creates durable advantages is foundational to this combination and expands what we can deliver for our limited partners and customers.”
Revers said: “This combination builds on ArcLight’s strong foundation and creates new opportunities for our investors, customers, and partners, while preserving the independence, discipline, and long-term focus that has defined our business since inception.
“By combining ArcLight’s deep experience across power infrastructure with DigitalBridge’s global digital infrastructure platform and longstanding relationships across the hyperscale ecosystem, and SoftBank Group’s broader technology and AI leadership, we believe the combined platform will be well positioned to support the next generation of infrastructure development.”
Acconcia said: “Over the past five years alone, we have significantly expanded our team, resources, and capabilities to create an integrated platform to meet this need at scale.
“ArcLight looks forward to building on this momentum in partnership with DigitalBridge as we execute on an integrated approach to powering the digital economy.”
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