(Reuters) -Alternative asset manager Apollo Global Management will buy real estate firm Bridge Investment Group for about $1.5 billion in an all-stock deal, expanding its real estate offerings. Bridge stockholders and unit holders of its subsidiary will each receive 0.07081 shares of Apollo stock for every share they hold, with each share valued at $11.50, […]
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Apollo to buy real-estate management firm Bridge Investment for $1.5 billion
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(Reuters) -Alternative asset manager Apollo Global Management will buy real estate firm Bridge Investment Group for about $1.5 billion in an all-stock deal, expanding its real estate offerings.
Bridge stockholders and unit holders of its subsidiary will each receive 0.07081 shares of Apollo stock for every share they hold, with each share valued at $11.50, the companies said on Monday.
The offer represents a premium of about 45% to Bridge’s last close. Shares of Bridge jumped 34% in premarket trading.
“Bridge will provide Apollo with immediate scale to its real estate equity platform and enhance Apollo’s origination capabilities in both real estate equity and credit,” the company said in a statement.
Bridge, which was founded in 2009 and went public in 2021, manages about $50 billion in assets and has more than 300 investment professionals who focus on real-estate investments.
Apollo has set targets of managing $1 trillion of assets by 2026 and $1.5 trillion by 2029, part of a set of goals it laid out at its investor day last October.
After the deal closes, expected in the third quarter, Bridge will operate as a standalone platform within Apollo’s asset management business.
Bridge Executive Chairman Bob Morse will become an Apollo partner and head its real-estate equity business.
(Reporting by Kannaki Deka in Bengaluru; Editing by Shilpi Majumdar and Sriraj Kalluvila)