Apollo Global Management Inc. APO entered a definitive agreement to acquire Bridge Investment Group Holdings Inc. as it seeks to expand its real estate offerings. APO agreed to acquire Bridge in an all-stock transaction with an equity value of $1.5 billion.

Founded in 2009, Bridge is an alternative investment manager diversified across residential and industrial real estate, as well as other specialized real estate asset classes. It has more than 300 investment specialists who focus on real estate investments and manage assets worth around $50 billion.

Financial Details of APO Deal

Under the terms of the transaction, Bridge stockholders and unit holders of its subsidiary will each receive 0.07081 shares of Apollo for every share they hold, with each share valued at $11.50.

Upon the closing of the transaction, which is expected in the third quarter of 2025, Bridge will operate as a stand-alone platform within Apollo’s asset management business, retaining its existing brand, management team and dedicated capital formation team.

Rationale Behind APO Deal

The impending acquisition of Bridge aligns with Apollo's objective to expand its real estate expertise and strengthen its wealth business.

APO's expanding range of hybrid and real estate product offerings could benefit from Bridge's quick scalability to its real estate equity platform and the improvement of Apollo's origination capabilities in real estate equity and credit.

Apollo's current real estate equity strategies and top real estate credit platform are anticipated to work in close harmony with Bridge, which oversees around $50 billion in premium AUM in real estate products aimed at institutional and wealth clients. The deal to acquire Bridge will nearly double Apollo’s real-estate assets under management to more than $110 billion.

The transaction is expected to be immediately accretive to APO’s fee-related earnings upon closing.

Apollo’s management stated, “We are pleased to announce this transaction with Bridge, which is highly aligned with Apollo’s strategic focus on expanding our origination base in areas of our business that are growing but not yet at scale.”

Bridge’s executive chairman, Bob Morse, informed, ”We are proud to be joining Apollo and its industry-leading team, who share our commitment to performance and excellence. 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.”

“With Apollo’s global integrated platform, resources, innovation and established expertise, we are confident that Bridge will be positioned for the next phase of growth amid growing demand across the alternative investments space,” Morse added.

APO Zacks Rank & Price Performance

Over the past six months, Apollo shares have gained 32.9% compared with the industry’s rise of 12.6%.

Image Source: Zacks Investment Research

Currently, Apollo carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Steps by Other Finance Firms

In January 2025, Stifel Financial Corp. SF entered a definitive agreement to acquire Bryan, Garnier & Co. (“Bryan Garnier”) — a prominent independent full-service investment bank committed to European technology and healthcare companies. The terms of the deal were kept under wraps.

Through the integration of Stifel's capabilities in consulting, private and public markets, and equity and debt solutions, SF and Bryan Garnier will provide customers, employees and the European market at large with unparalleled opportunities.

In December 2024, Berkshire Hills Bancorp, Inc. BHLB agreed to acquire Brookline Bancorp, Inc. BRKL and its subsidiary, Brookline Bank. The all-stock transaction has been valued at $1.14 billion. The deal is expected to be closed by Sept. 30, 2025, subject to requisite regulatory approvals and shareholders’ approvals of both entities.

Per the agreement, BHLB will pay 0.42 shares of its common stock for each share of BRKL. In conjunction with the deal, Berkshire will issue $100 million of its common stock at $29 per share. The capital raise is anticipated to be completed on Dec. 19, 2024.

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Apollo Global Management Inc. (APO) : Free Stock Analysis Report

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