Bain fights KKR with US$4.1 billion Fuji Soft bid

BAIN Capital has proposed a US$4.1 billion takeover of Fuji Soft, the Nikkei reported, a surprise offer that threatens to derail an agreed-upon acquisition by KKR & Co.

A KKR entity last month agreed to acquire and take the software developer private at about 8,800 yen (S$78.81) a share. Bain Capital is now proposing to buy out the Japanese firm at 9,200 yen to 9,300 yen per share, or about 5% above KKR’s bid, the Nikkei said, without citing its sources. 

Bain’s counteroffer sets the stage for a rare public takeover battle in Japan, where corporate acquisitions are traditionally negotiated and sealed behind closed doors. But a weaker yen and regulators’ emphasis on shareholder value are now ramping up M&A activity, most recently with Alimentation Couche-Tard’s proposed buyout of Seven & i Holdings.

In the case of Fuji Soft, activist investors have pushed for some time for the software firm to unlock value through spinoffs or deals.

Fuji Soft is a contract software developer for Fujitsu, which supplies clearance and network systems for some of Japan’s biggest banks such as Mizuho Financial Group, as well as government agencies. BLOOMBERG