DigitalBridge Group and ArcLight Capital Partners Unite in $1.05 Billion Strategic Merger

The acquisition consists of a base purchase price of $650 million, complemented by an additional contingent consideration of up to $400 million. This merger will merge two specialist platforms, consolidating their assets to represent over $150 billion. The partnership is contingent upon the completion of DigitalBridge's previously announced acquisition by an affiliate of SoftBank Group Corp., which will not affect the terms or consideration of the ArcLight transaction.

DigitalBridge and ArcLight are poised to leverage their combined expertise in the digital and power infrastructure sectors. The rapidly increasing demand for compute, connectivity, and power driven by advancements in AI and electrification presents a generational opportunity for infrastructure investment. Marc Ganzi, CEO of DigitalBridge, emphasized the benefits of specialization, stating, “The shared conviction that specialization creates durable advantages is foundational to this combination.”

ArcLight, founded in 2001, has managed over 70 GW of generation assets and 48,000 miles of electric and gas transmission and storage infrastructure, amounting to an enterprise value exceeding $90 billion. This extensive experience positions ArcLight as a leader in the private power generation sector and enhances DigitalBridge's capabilities in digital infrastructure investment.

Following the merger, ArcLight will operate as a separate business entity within the DigitalBridge framework. Daniel Revers, founder of ArcLight, will assume the role of Vice Chairman of DigitalBridge, ensuring continuity and strategic alignment. Meanwhile, Angelo Acconcia will continue his leadership as Managing Partner of ArcLight, focusing on day-to-day operations. Jake Erhard, currently a Partner at ArcLight, will transition to the role of Senior Partner.

Revers remarked on the merger's potential, stating, “This combination builds on ArcLight’s strong foundation and creates new opportunities for our investors, customers, and partners.” He highlighted the necessity of integrated expertise across power and digital infrastructure to meet rising demands.

The transaction is subject to customary closing conditions, including required regulatory approvals and requisite limited partner consents. The merger agreement will be filed with the SEC. DigitalBridge has engaged Barclays as its financial advisor and sole committed financing provider for the transaction, while ArcLight has appointed Morgan Stanley & Co. LLC for financial advisory services.

The merger between DigitalBridge and ArcLight signals a transformative step in the alternative asset management industry, bringing together two titans in their respective fields. As the world increasingly relies on digital solutions and sustainable energy, this strategic combination is expected to drive innovation and investment in infrastructure development across North America and globally. With the backing of SoftBank Group's technological prowess, the new entity aims to redefine the future of power and digital infrastructure, positioning itself as a leader in meeting the challenges of a rapidly evolving market.