TPG Boosts Digital Infrastructure Portfolio With $660 Million Peppertree Acquisition

TPG Inc. (NASDAQ:TPG) shares are trading lower on Wednesday. On Tuesday, the company disclosed a deal to acquire Peppertree Capital Management, Inc. in a cash and equity deal worth up to $660 million.

The transaction involves a combination of cash and equity, estimated at up to $242 million in cash and up to $418 million in equity payable upon closing, with both amounts subject to certain adjustments.

The agreement also includes potential earnout payments of up to $300 million based on Peppertree’s future performance.

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The transaction has been approved by TPG’s Board of Directors and is anticipated to close in the third quarter of 2025, subject to standard closing conditions.

Upon completion, Peppertree is poised to significantly enhance TPG’s capabilities in developing wireless communication towers and network infrastructure.

This increased scale is anticipated to complement TPG’s existing leading position across its Internet, Digital Media & Communications (IDMC) platform.

The combined assets under management (AUM) of TPG and Peppertree is projected to be $253.6 billion on a pro forma basis, and the transaction is expected to immediately increase TPG’s fee-related earnings and after-tax distributable earnings per share upon closing.

David Trujillo and John Flynn, Partners at TPG, added, “Peppertree’s track record of investing in high-quality wireless communications towers and critical digital infrastructure assets, combined with TPG’s thematic investing approach and legacy of scaling innovative internet and communications companies, positions us to leverage our collective insights and expertise to build high-quality, growing digital infrastructure-related businesses.”

In a separate release, TPG, in partnership with Corpay, agreed to acquire AvidXchange Holdings, Inc. for $10 per share in a cash transaction valued at $2.2 billion.

As of December 31, TPG’s cash and cash equivalents stood at around $147 million.

TPG plans to release first-quarter earnings before the market opens on May 7, 2025.

Investors can gain exposure to the stock via Invesco Global Listed Private Equity ETF (NYSE:PSP) and EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF (BATS:LBO).

Price Action: TPG shares are down 1.28% to $45.60 at the last check on Wednesday.

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