Private Equity Potentia Capital Firm Bids USD 364M For Australia's Nitro Software Ltd.

By: Asia Business Outlook Team | Thursday, 23 February 2023

Nitro Software Ltd in Australia announced on Thursday that private equity firm Potentia Capital had increased its takeover offer for the software maker to A$532.3 million (about $364 million), edging out a rival offer from KKR Inc-backed Alludo.

Since last October, Potentia and Alludo have been in a bidding war for Nitro, as high inflation and weak consumer demand have made technology firms attractive buyout targets.

Potentia, which owns 19.31% of Nitro, made an offer of A$2.17 per share, beating Alludo's offer of A$2.15, which Nitro shareholders rejected a few weeks ago.

Despite being at the lower end of the previously signalled A$2.20- to A$2.30-per-share bid range, Nitro's board said Potentia's latest offer was superior to Alludo's.

Nitro's board, on the other hand, advised shareholders to reject both offers.

Potentia's offer is contingent on Nitro's board unanimously recommending to its shareholders that the latest offer be accepted in the absence of a superior proposal.

If the offer is declared unconditional, Nitro shareholders who accept the current bid will be entitled to any subsequent increase in the offer price to A$2.20 or A$2.25, according to Potentia.