KKR Secures Majority Stake in Fuji Soft, Concluding Contentious Takeover Battle

U.S. private equity giant KKR has emerged victorious in its bid to acquire Fuji Soft, a Japanese software developer, after securing a 57.92% stake in the company. The deal marks the culmination of a fierce battle with rival Bain Capital, which withdrew its takeover proposal on Monday.

KKR's successful tender offer, valued at 9,850 yen per share, prevailed over Bain's multiple counterbids. The saga, which began in August 2022, has been a testament to the increasingly competitive landscape of Japan's deal-making market.

Bidding War and Hostile Bid

KKR's initial bid was met with a higher offer from Bain, which garnered the support of Fuji Soft's founder, Hiroshi Nozawa. However, Fuji Soft's board sided with KKR, prompting Bain to make a hostile bid in December and criticize the board's handling of the privatization process.

Legal Threats

KKR's concerns over Bain's use of confidential information during due diligence led to a request for legal action against its rival. This heightened the already contentious nature of the battle.

Activist Investor Influence

The takeover battle was also influenced by an activist investor campaign from 3D Investment Partners, which had urged Fuji Soft to explore strategic alternatives, including a potential sale.

With KKR's majority stake secured, the intense takeover battle has come to an end. The deal underscores the growing appetite among global private equity funds for Japanese companies with untapped value and potential for enhanced shareholder returns.