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Laxman Pai, Opalesque Asia: Los Angeles-based Colony Capital has acquired investment firm Digital Bridge for $325m, resulting in a merged firm with $60bn in total assets under management.
The acquisition is part of Colony's strategy to position itself as an owner and investment manager of assets, businesses and investment management products of in the real estate technology market.
Following a transition period of 18 to 24 months, Marc C. Ganzi, a founder and CEO of Digital Bridge, will succeed Colony's Thomas J. Barrack Jr. as CEO. Barrack will retain the role of executive chairman at the combined company.
Ganzi, Barrack, the Colony board and executive team will focus on Colony's strategic plan that includes selling non-core assets, increasing investment management and maintaining the Colony's real estate investment trust status, according to a press release.
The $325m purchase price is made up of two-thirds cash and one-third units of limited-partnership interest in Colony's operating partnership.
The two companies closed the co-sponsored fund Digital Colony Partners in May. The fund focused on global opportunities in digital infrastructure and is valued at $4.05bn. It is the largest fund of this type.
Before the merger Colony had $43bn in AUM. Digital Bridge is expected to manage nearly $20bn directly and through Digital Colony Partners and upon the close of Digital Colony and private equity firm EQT Partners' $14.3bn acquisition of U.S. communi...................... To view our full article Click here
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