KKR Completes Take-Private of Fuji Soft for $3.2 Billion After Prolonged Bidding War
KKR concludes its protracted acquisition of Japanese software company Fuji Soft, ending a dramatic saga involving competing bids and activist shareholders.
KKR Finalizes Fuji Soft Acquisition
KKR concluded its protracted acquisition of Japanese software company Fuji Soft in June 2025, taking the company private in a deal valued at approximately JPY 480 billion ($3.2 billion). The transaction ended a dramatic saga that stretched over more than two years and involved competing bids, activist shareholders, and multiple rounds of escalating offers.
Origins of the Deal
The roots of the deal trace back to 2022, when activist fund 3D Investment Partners acquired a significant stake in Fuji Soft and began pushing for a strategic review. By 2023, 3D was actively seeking private equity partners to take the company private. KKR eventually emerged as the frontrunner, but Bain Capital entered the fray with a rival bid, sparking a competitive auction that drove up the final price.
Two-Stage Tender Offer
KKR ultimately prevailed through a two-stage tender offer. The first stage secured backing from 3D Investment Partners and Farallon Capital Management, which together held approximately 32.7% of Fuji Soft's shares. The second stage mopped up remaining shareholders at JPY 9,850 per share, a premium of roughly 12% over the first-stage offer price.
Strategic Rationale and Transformation Plans
Fuji Soft is a mid-cap software and IT services provider with deep relationships across Japanese manufacturing, financial services, and public sector clients. KKR has outlined plans to accelerate the company's transition toward cloud-based services, cybersecurity solutions, and AI-enabled enterprise software, areas where Fuji Soft has existing capabilities but has been slow to scale.
The Take-Private Wave in Japan's Tech Sector
The deal is emblematic of the take-private wave now sweeping through Japan's technology sector. Japanese software companies have historically traded at discounts to global peers, making them attractive targets for buyout firms seeking to unlock value through operational improvements and strategic repositioning. With the Tokyo Stock Exchange's reforms encouraging companies to address low price-to-book ratios, the pipeline of potential take-private candidates in Japan's technology sector remains robust heading into 2026.
