{"id":23815,"date":"2021-04-11T05:05:03","date_gmt":"2021-04-11T05:05:03","guid":{"rendered":"https:\/\/rbsitsoftwaresolution.com\/blog\/kkr-hands-box-a-500m-lifeline.html"},"modified":"2021-04-11T05:05:03","modified_gmt":"2021-04-11T05:05:03","slug":"kkr-hands-box-a-500m-lifeline","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/kkr-hands-box-a-500m-lifeline.html","title":{"rendered":"KKR hands Box a $500M lifeline"},"content":{"rendered":"

Box<\/a> announced this morning that private equity firm KKR<\/a> is investing $500 million in the company, a move that could help the struggling cloud content management vendor get out from under pressure from activist investor Starboard Value.<\/p>\n

The company plans to use the proceeds in what\u2019s called a \u201cDutch auction<\/a>\u201d style sale to buy back shares from certain investors for the price determined by the auction, an activity that should take place after the company announces its next earnings report in May. This would presumably involve buying out Starboard, which took a 7.5% stake in the company<\/a> in 2019.<\/p>\n

Last month Reuters reported<\/a> that Starboard could be looking to take over a majority of the board seats when the company board meets in June. That could have set them up to take some action, most likely forcing a sale.<\/p>\n

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Box acquires e-signature startup SignRequest for new content workflows<\/a><\/p>\n<\/blockquote>\n

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While it\u2019s not clear what will happen now, it seems likely that with this cash, they will be able to stave off action from Starboard, and with KKR in the picture be able to take a longer-term view. Box CEO Aaron Levie sees the move as a vote of confidence from KKR in Box\u2019s approach.<\/p>\n

\u201cKKR is one of the world\u2019s leading technology investors with a deep understanding of our market and a proven track record of partnering successfully with companies to create value and drive growth. With their support, we will be even better positioned to build on Box\u2019s leadership in cloud content management as we continue to deliver value for our customers around the world,\u201d Levie said in a statement.<\/p>\n

Under the terms of the deal, John Park, head of Americas Technology Private Equity at KKR, will be joining the Box board of directors. The company also announced that independent board member Bethany Mayer will be appointed chairman of the board, effective on May 1st.<\/p>\n

Earlier this year, the company bought e-signature startup SignRequest<\/a>, which could help open up a new set of workflows for the company as it tries to expand its market. With KKR\u2019s backing, it\u2019s not unreasonable to expect that Box, which is cash flow positive, could be taking additional steps to expand the platform in the future.<\/p>\n

Box stock was down more than 8% premarket, a signal that perhaps Wall Street isn\u2019t thrilled with the announcement, but the cash influx should give Box some breathing room to reset and push forward.<\/p>\n

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As activist investors loom, what\u2019s next for Box?<\/a><\/p>\n<\/blockquote>\n

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Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/si4vkLiBonQ\/<\/p>","protected":false},"excerpt":{"rendered":"

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