KKR to Launch Tender Offer for Fuji Soft on Thursday: Report

Summary

Private equity firm KKR & Co. is set to launch a tender offer for Japanese IT services company Fuji Soft on Thursday, Bloomberg News reported on Wednesday, citing people familiar with the matter.

According to the report, KKR plans to offer around 5,000 yen ($45.63) per share for Fuji Soft, valuing the company at about 320 billion yen ($2.9 billion).

KKR's offer represents a premium of about 20% to Fuji Soft's closing price on Wednesday.

KKR's Strategy

The potential acquisition of Fuji Soft is in line with KKR's strategy of investing in technology companies in Asia.

In recent years, KKR has made several investments in the region, including deals with Indian IT services company Tech Mahindra and Chinese e-commerce company JD.com.

Fuji Soft is a leading provider of IT services in Japan, with a focus on systems integration, cloud computing, and data analytics.

Fuji Soft's Response

Fuji Soft declined to comment on the report when contacted by Reuters.

However, the company's shares jumped by more than 10% in Tokyo trading on Thursday following the Bloomberg report.

Impact on the Industry

If successful, KKR's acquisition of Fuji Soft would be one of the largest private equity deals in Japan in recent years.

It would also further consolidate the IT services market in Japan, which is already dominated by a few large players.

Conclusion

KKR's tender offer for Fuji Soft is a significant development in the Japanese IT services market.

If successful, the deal would give KKR a major foothold in the country and further consolidate the industry.