DigitalBridge Group Inc, an asset manager dedicated to investing in digital infrastructure has agreed to acquire ArcLight Capital Partners, LLC (ArcLight), an American private equity firm, in a deal valued at up to US$ 1.05 billion. The deal is contingent on completion of SoftBank Group Corp.’s previously announced acquisition of DigitalBridge, along with regulatory approvals and limited partner consents. It will not change the terms of the SoftBank transaction.
According to a DigitalBridge press release, ArcLight will continue to operate as a separately managed business within the DigitalBridge platform, maintaining its existing investment processes under the agreement. The consideration includes a US$ 650 million base payment and up to US$ 400 million in contingent payments. The combined platform will oversee more than US$ 150 billion in assets across digital and energy infrastructure, positioning the firm at the intersection of power, artificial intelligence, and data infrastructure investment.
Marc Ganzi, CEO, DigitalBridge, said, “AI is rewiring the global power equation, accelerating investment across generation, transmission, and behind-the-meter infrastructure. DigitalBridge and ArcLight will help create a scaled infrastructure platform positioned for that convergence.”
Daniel Revers, Founder, ArcLight, said, “As demand for compute, connectivity, and electrification continues to accelerate, we believe the next phase of infrastructure investing will increasingly require integrated expertise across both power and digital infrastructure, broader technology and AI leadership, we believe the combined platform will be well positioned to support the next generation of infrastructure development.”
Angelo Acconcia, Managing Partner of ArcLight, said, “Meeting the power demands of AI infrastructure, reshoring, and electrification is a generational opportunity. Power has become the critical bottleneck for digital infrastructure buildout.”
As part of the post-closing structure, Daniel Revers will become vice chairman of DigitalBridge. Angelo Acconcia will remain managing partner of ArcLight, and Jake Erhard will become senior partner.
Barclays is acting as financial adviser and committed financing provider to DigitalBridge. Simpson Thacher & Bartlett LLP and Morgan, Lewis & Bockius LLP are advising DigitalBridge. Morgan Stanley & Co. LLC and Kirkland & Ellis LLP are advising ArcLight. Sullivan & Cromwell LLP, Morrison & Foerster LLP, and Covington & Burling LLP are advising SoftBank.