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Key Takeaways

• Bridge Investment Group Holdings agreed to be purchased by investment firm Apollo Global Management for $1.5 billion, and shares took off.

• The agreement gives Bridge investors Apollo shares worth about $11.50 per Bridge share, a 45% premium from Friday's closing price.

• Following the close, Bridge will operate as a standalone platform within Apollo.

Bridge Investment Group Holdings (BRDG) shares soared 35% Monday as the real-estate investment firm agreed to be purchased by Apollo Global Management (APO) for $1.5 billion.

The deal calls for Bridge stockholders and Bridge OpCo unitholders to receive 0.07081 shares of Apollo, or about $11.50 per share. That's a 45% premium to Bridge's closing price on Friday.

The companies said the acquisition will give Apollo "immediate scale to its real estate equity platform and enhance Apollo’s origination capabilities in both real estate equity and credit, which is expected to benefit Apollo's growing suite of hybrid and real estate product offerings."

The agreement will have Bridge operate as a standalone platform within Apollo's asset management business. The company's existing brand, management team, and dedicated capital formation team will remain the same. The transaction is expected to close in the third quarter, and Bridge no longer will be holding its fourth-quarter earnings call scheduled for Tuesday.

Shares of Bridge Investment Holdings added more than a third of their value following the news, and now are up about 50% over the past year. Apollo Global Management shares were down about 1.5%, although they remain about 33% higher than a year ago.

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