Apollo Global Management has entered into an agreement to acquire Bridge Investment Group, a prominent real estate-focused investment firm, in an all-stock transaction valued at $1.5 billion. This strategic move is set to bolster Apollo's existing real estate equity platform significantly. According to the announcement from both companies, shareholders and unitholders of Bridge Investment will receive 0.07081 shares of Apollo stock for each class A share and common unit they hold, which effectively prices Bridge Investment's shares and units at $11.50 each. In the wake of this news, Bridge Investment's stock witnessed a substantial surge of 37% during midday trading, while Apollo's shares saw a slight decline of 1.4%.
This transaction is pending approval from a majority of Bridge Investment's stockholders, as well as regulatory clearance, and is anticipated to be finalized in the third quarter of this year. Notably, members of Bridge Investment's management team and their affiliates, who control 51.4% of the company's class A and B shares, have pledged support for this deal. Upon completion, Bridge Investment will cease to be publicly traded on the New York Stock Exchange and will operate as a distinct platform under Apollo's wider asset management umbrella.
Apollo Partner David Sambur expressed confidence regarding the transaction, indicating that it aligns closely with Apollo's strategic priority of enhancing its origination base in growing sectors of investment. Sambur noted that Bridge Investment's operations are expected to complement and augment Apollo's capabilities in the real estate sector. Apollo's leadership anticipates that this acquisition will be immediately accretive to its earnings related to fees post-completion.
Bridge Investment boasts approximately $50 billion in assets under management, predominantly in real estate products aimed at institutional and wealth clients. Bob Morse, Executive Chairman of Bridge Investment, highlighted the significance of this transaction, stating, "This transaction will allow the Bridge and Apollo teams to grow on the strong foundation that Bridge has built since 2009 as we work to pursue meaningful value and impact for our investors and communities." Morse will transition into a partnership role at Apollo while overseeing its real estate equity division. In summary, this acquisition not only solidifies Apollo's position in the real estate market but also sets the stage for collaborative growth and enhanced investment offerings, addressing the increasing demand within the alternative investments arena..