Bain Capital offers to buy Japanese software developer Fuji Soft for $4.1 billion, surpassing rival KKR’s bid

Bain Capital has offered to acquire Japanese software developer Fuji Soft, valuing the deal at around 600 billion yen ($4.1 billion). This bid surpasses a previous offer from KKR, another equity fund.

In its announcement on Tuesday, Bain revealed that its proposal exceeds KKR’s tender offer of 8,800 yen per share by roughly 5%. On Tuesday, Fuji Soft’s stock closed at 8,970 yen. The company has faced tensions with some of its major shareholders, including 3D Investment Partners, a fund based in Singapore, as reported by Reuters.

Fuji Soft confirmed receiving Bain’s non-binding offer in July and stated that its board will review any formal proposal.

Earlier this year, 3D Investment Partners, Fuji Soft’s largest shareholder with a 21% stake, suggested that the company appoint an external auditor to ensure all takeover bids from global private equity firms are fairly evaluated, Reuters reported.

In a similar move last year, Bain Capital offered to purchase SoftwareOne, a Swiss software and cloud technology firm, initially offering 2.9 billion Swiss francs ($3.21 billion). Bain later increased its bid to $3.7 billion after the board rejected its offer.

Founded in 1970, Fuji Soft is a Japanese IT company specializing in software development for embedded and control systems, vital for machine and automotive applications. Its services extend to system construction, maintenance, cloud integration, security solutions, and digital transformation. Additionally, Fuji Soft is involved in leasing office buildings, data entry, contact centers, and regenerative medicine.

Headquartered in Yokohama, Japan, Fuji Soft operates both locally and internationally. It employs around 17,000 people and has a market capitalization of over $4.1 billion.