Blue Owl Capital Moves to Expand Assets with $1 Billion Acquisition
The acquisition will enhance Blue Owl's digital real estate and data infrastructure holdings.
October 07, 2024
Blue Owl Capital Inc. has announced a strategic move to acquire a substantial portion of IPI Partners LLC’s assets. The acquisition, valued at around $1 billion, will involve a mix of cash payments and equity issuance, positioning Blue Owl to strengthen its presence in the digital real estate and data infrastructure sectors.
The deal includes a cash consideration of approximately $203.8 million, along with the issuance of nearly 43 million common units in Blue Owl’s operating partnerships. These common units will be matched with an equal number of Class C shares. The total equity value will be determined based on a 20-day volume-weighted average price of Blue Owl’s Class A shares, ending on October 2, 2024.
Focus on Data Infrastructure and Digital Growth
This acquisition allows Blue Owl to expand its portfolio of technology-driven assets, which are crucial in supporting cloud infrastructure and other data-dependent sectors. The acquisition aligns with the company's long-term strategy of identifying growth opportunities within technology and digital infrastructure.
Additionally, Blue Owl expects to issue incentive units in 2026 and later, which will be fully vested upon issuance. These units will be tied to the performance of the acquired assets, further aligning interests between Blue Owl and IPI Partners. The acquisition is expected to close by late 2024 or early 2025, subject to regulatory approvals.
Through this acquisition and its partnership with ICONIQ Capital LLC, which will provide ongoing services like investment analysis, Blue Owl continues to position itself as a leader in alternative asset management, particularly within high-growth tech sectors.
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