Status: Clearance
Acquirer: Affiliates of Wafra Inc. (US)
Acquired: DigitalBridge Group, Inc. (U.S.)
Value: US$213 million
Industry: Network and Data Solutions
On July 13, 2020, Colony Capital, Inc., a publicly traded investment management firm traded as DigitalBridge Group, Inc. (NYSE: DBRG) as of June 2021, and its operating company Colony Capital Operating Company, LLC, entered into an agreement “with W-Catalina (S) LLC, W-Catalina (C) LLC, W-Catalina (SP) LLC and Wafra Strategic Holdings LP, each affiliates of Wafra Inc.,” a New York based investment firm, by which the affiliates of Wafra will acquire approximately 31.5%, through an approximate $253.6 million investment, in a newly-formed venture that will operate the digital investment management business (“Digital Colony IM”) of DigitalBridge Group, Inc. (See Colony Capital, Inc., Form 8-K, July 13, 2020, SEC Filing.) This new Digital Colony IM venture will include new fund strategies in digital infrastructure in which Wafra elects to participate and “will entitle Wafra to participate in net management fees, carried interests and performance fees generated by Digital Colony IM.” (Id.)
Under the terms of the Investment Agreement, the parties were required to “use their respective reasonable best efforts to obtain CFIUS Approval.” (Section 7.8(a)(i), Investment Agreement, Colony Capital Inc, Form 8-K, Ex-10.1, July 23, 2020, SEC Filing.) “Wafra’s strategic investment for 31.5% of Digital IM closed on July 17, 2020.” (Colony Capital, Inc., Form 8-K, Ex-99.1, Nov. 6, 2020, SEC Filing.)
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