DigitalBridge shares rise on deal to increase free-related earnings

DigitalBridge Group Inc. shares rose 3.6% in premarket trades on Monday after the company said it’s 2022 run-rate of fee-related earnings will grow by $38 million after it acquires a 31.5% stake in its investment management unit, DigitalBridge IM, from investor Wafra Inc. Boca Raton, Fla.-based Digital Bridge said it’ll pay Wafra $410 million in newly-issued Class A common stock and $390 million in cash, for a total price of $800 million. The DigitalBridge IM business is expected to grow FRE organically by 20% or more. “This accretive transaction will drive an immediate and substantial increase in earnings to DigitalBridge shareholders, raising their exposure to our high-growth, high-return investment management platform just as we are poised to continue scaling our full-stack strategy,” said Marc Ganzi, CEO of DigitalBridge.

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