Apollo Global Management Inc. has agreed to buy Argo Infrastructure Partners in a cash and stock deal that will add about $6 billion to the company’s assets.
After the implementation of the mentioned business agreement, more than 20 specialists will join Apollo. The relevant information is contained in the company’s official statement, which was published on Monday, January 13.
Apollo also expects the implementation of the deal to be modestly accretive to fee-related earnings next year. There is no information yet about the additional terms of the business agreement.
Argo was founded in 2013. This company invests in digital infrastructure, renewable energy sources, transportation, and other industries. Upon completion of the deal, the firm is expected to join Apollo’s sustainability and infrastructure group.
It is worth noting that many private market companies have recently begun to pay more attention to infrastructure, pointing to the need for private capital to fund major projects in the context of ballooning government deficits.
Last year, BlackRock Inc. bought Global Infrastructure Partners to become one of the largest investors in the relevant asset class. At the same time, Brookfield Asset Management Ltd. raised a record fund. Blackstone Inc. introduced a new vehicle for wealthy individuals to put money into the sector.
It is expected that the deal to purchase Argo by Apollo will be completed in the second quarter of the current year.
Harry Seekings and Olivia Wassenaar, co-heads of infrastructure at Apollo, stated that the Argo team has formed a high-quality portfolio, managing assets on behalf of a top-tier group of institutional investors.
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