DigitalBridge Group Inc. (NYSE: DBRG) announced it has entered into a definitive agreement to acquire ArcLight Capital Partners LLC for a total transaction value of up to $1.05 billion, according to a press release statement.

The consideration includes a base purchase price of $650 million plus up to an additional $400 million of contingent consideration. The transaction is contingent upon completion of SoftBank Group Corp.'s pending acquisition of DigitalBridge.

Founded in 2001, ArcLight operates as a power and electric infrastructure specialist investor. The firm has owned, controlled or operated over 70 GW of generation assets and 48,000 miles of electric and gas transmission and storage infrastructure, representing more than $90 billion of enterprise value.

ArcLight operates one of the largest private power generation portfolios in North America and maintains an 85-person power development organization with a pipeline exceeding 15 GW. The firm will continue operating as a separately managed business within the DigitalBridge platform following the transaction.

The combined entity will represent more than $150 billion in assets under management. Marc Ganzi will continue as Chief Executive Officer of DigitalBridge, while ArcLight founder Daniel Revers will serve as Vice Chairman of DigitalBridge upon completion.

Angelo Acconcia will continue as Managing Partner of ArcLight, maintaining day-to-day leadership of the firm. Jake Erhard, currently a Partner at ArcLight, will become Senior Partner.

The transaction requires customary closing conditions including regulatory approvals, limited partner consents, and completion of the SoftBank acquisition. Barclays serves as financial advisor to DigitalBridge, while Morgan Stanley & Co. LLC advises ArcLight.