KKR Secures 35% Stake in Fuji Soft, Blocking Rival Bid
Deal News | Nov 06, 2024 | Zawya
KKR, a prominent private equity firm, has successfully acquired a 35% stake in the Japanese software developer, Fuji Soft, marking a significant step in its two-stage buyout tender offer. This move positions KKR strategically to block a rival bid from Bain Capital, which, despite proposing a higher offer in October, needed Fuji Soft's management approval—still pending—to take the company private. Key investors, 3D Investment Partners and Farallon Capital, who collectively hold a significant stake in Fuji Soft, have agreed to tender their shares to KKR at a price of 8,800 yen per share. Bain Capital, on the other hand, had proposed a higher bid of 9,450 yen per share but emphasized the necessity of Fuji Soft management's backing, which they have not secured. KKR is poised to initiate the second phase of their offer, maintaining the original price of 8,800 yen per share, in mid-November.
Sectors
- Private Equity
- Software Development
- Investment Management
Geography
- Japan – The headquarters and primary operations of Fuji Soft, the target company, are located in Japan, making it the primary geographic focus.
Industry
- Private Equity – The article involves a transaction led by KKR, a major private equity firm, acquiring a significant stake in a company.
- Software Development – Fuji Soft, a Japanese software developer, is the primary company involved in the acquisition deal.
- Investment Management – 3D Investment Partners and Farallon Capital are investment firms involved as shareholders in Fuji Soft.
Financials
- 8,800 yen per share – The price KKR offered per share to acquire a stake in Fuji Soft.
- 9,450 yen per share – The higher price Bain Capital proposed for a bid, conditional on Fuji Soft management approval.
- 35% – The percentage of Fuji Soft shares acquired by KKR in the first stage of its tender offer.
- 32.7% – The combined percentage of Fuji Soft shares owned by 3D Investment Partners and Farallon Capital.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| KKR | Bidding Company/Buyer | Company | A global investment firm involved in the acquisition of a 35% stake in Fuji Soft. |
| Fuji Soft | Target Company | Company | A Japanese software developer subject to the acquisition by KKR. |
| Bain Capital | Rival Bidder | Company | A private equity firm that proposed a higher bid to take Fuji Soft private. |
| 3D Investment Partners | Selling Company/Shareholder | Company | An investment firm that holds a significant stake in Fuji Soft and agreed to the tender offer by KKR. |
| Farallon Capital | Selling Company/Shareholder | Company | An investment firm that holds a significant stake in Fuji Soft and agreed to the tender offer by KKR. |
| Anton Bridge | Reporter | Person | Journalist reporting on the acquisition deal. |
| Kane Wu | Reporter | Person | Journalist reporting on the acquisition deal. |
| Muralikumar Anantharaman | Editor | Person | Editor involved in the article's publication. |
| Sonia Cheema | Editor | Person | Editor involved in the article's publication. |