Bain Capital Withdraws Tender for Fuji Soft Acquisition

U.S. private equity firm Bain Capital announced on Monday that it will not proceed with a tender offer for Fuji Soft, officially ending its takeover battle with rival KKR for the Japanese IT company. Bain had previously indicated it might withdraw after KKR raised its bid, surpassing Bain's offer in a months-long contest.

Despite Fuji Soft's board rejecting Bain's proposal, the private equity firm had argued that the rejection was detrimental to the interests of minority shareholders. However, KKR increased its offer to 9,850 yen ($65) per share earlier this month, exceeding Bain's December offer of 9,600 yen.

In a statement, Bain Capital expressed its wishes for Fuji Soft’s continued growth under its new governance structure led by the new shareholders. The takeover saga highlights the competitive dealmaking environment in Japan, with global investment firms targeting Japanese companies seen as having untapped assets or ineffective corporate governance.

On Monday morning, shares of Fuji Soft were trading at the KKR-offered price of 9,850 yen, reflecting the current value of the company, which is more than $4 billion.