DigitalBridge Group, a global alternative asset manager dedicated to digital infrastructure, on May 27 announced that it has entered into a definitive agreement to acquire ArcLight Capital Partners for a total transaction value of up to $1.05 billion.
“The combination forms a leading alternative asset manager at the convergence of power, AI, and digital infrastructure, bringing together two specialist platforms with combined assets representing more than $150 billion,” the companies said.
Since ArcLight’s founding in 2001, ArcLight has owned, controlled, or operated over 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.
The firm operates one of the largest private power generation portfolios and development pipelines in North America, supported by an integrated platform of strategic, technical, operational, and commercial specialists, including an 85-person power development organization with a pipeline exceeding 15 GW.
The transaction is conditioned upon completion of the previously announced acquisition of DigitalBridge by an affiliate of SoftBank Group Corp. and will not alter or affect the terms of or consideration payable under the SoftBank acquisition.
"With SoftBank Group’s leadership across the global technology and AI landscape, the transaction will bring together two leading investment managers in the digital infrastructure and power infrastructure sectors -- forming a platform with the scale, development capabilities, and relationships -- to invest behind growing demand for compute, connectivity, and power," ArcLight and DigitalBridge Group said.
The combination is expected to enable new investment solutions that draw on the specialist expertise of both firms to mobilize capital for future power and digital infrastructure development across North American and global markets, they said.
ArcLight will operate as a separately managed business as part of the DigitalBridge platform. ArcLight will maintain continuity in its investment processes consistent with its long-standing commitments to limited partners, including its focus on targeting attractive risk-adjusted returns and DPI, disciplined risk management, and partnership-based approach, which will remain intact.
