DigitalBridge to Acquire ArcLight in $1.05B Power Infrastructure Deal
DigitalBridge Group has agreed to acquire ArcLight Capital Partners, a power and electric infrastructure investor, for a total value of up to $1.05 billion. The deal includes a base purchase price of $650 million plus up to $400 million in contingent consideration.
Founded in 2001, ArcLight has owned, controlled or operated more than 70 gigawatts of generation assets and 48,000 miles of electric and gas transmission and storage infrastructure, representing more than $90 billion of enterprise value. The firm operates one of the largest private power generation portfolios and development pipelines in North America, including an 85-person power development organization with a pipeline exceeding 15 gigawatts.
“AI is rewiring the global power equation, accelerating investment across generation, transmission, and behind-the-meter infrastructure,” said Marc Ganzi, CEO of DigitalBridge. “We believe the firms best positioned for this next phase of growth will be those that are able to underwrite both digital and energy infrastructure with equal depth and credibility.”
Daniel Revers, Founder of ArcLight, said the combination reflects where infrastructure investing is headed. “As demand for compute, connectivity, and electrification continues to accelerate, the next phase of infrastructure investing will increasingly require integrated expertise across both power and digital infrastructure,” he said.
ArcLight will operate as a separately managed business within the DigitalBridge platform. Upon closing, Revers will become Vice Chairman of DigitalBridge, Angelo Acconcia will serve as Managing Partner of ArcLight, and Jake Erhard will be elevated to Senior Partner.
The transaction is contingent upon completion of SoftBank Group’s previously announced acquisition of DigitalBridge.
Barclays is acting as financial advisor and sole committed financing provider to DigitalBridge. Simpson Thacher & Bartlett LLP is serving as legal counsel to DigitalBridge, along with Morgan, Lewis, & Bockius as regulatory counsel. Morgan Stanley & Co. LLC is serving as financial advisor, and Kirkland & Ellis LLP is serving as legal counsel to ArcLight. Sullivan & Cromwell LLP is serving as legal counsel to SoftBank Group, along with Morrison & Foerster LLP and Covington & Burlington LLP as regulatory counsel.