Raymond James sees ‘strong logic’ in SoftBank buying DigitalBridge

Raymond James analyst Ric Prentiss notes that DigitalBridge (DBRG) and SoftBank (SFTBY) announced that the latter has agreed to buy the former for $16/share with 100% cash. The firm expects a closing process of roughly nine months. Raymond’s backstop takeout thesis is playing out, but it views the $16 valuation as underwhelming. With that said, the firm sees strong logic in SoftBank buying Strong Buy-rated DigitalBridge given like-minded CEOs and the significant strategic value of DigitalBridge’s portfolio companies. Raymond does not expect a topping bid as it believes DigitalBridge was looked at by others in the process.