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(Reuters) -Box Inc said on Thursday private equity giant KKR & Co Inc would lead a $500 million investment in the company and get a board seat, marking an end to the cloud services provider’s strategic review.
FILE PHOTO: FILE PHOTO: Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid/File Photo
The KKR-led investment will be executed through convertible preferred stock and comes weeks after Reuters reported Box was exploring a sale amid pressure from hedge fund Starboard Value LP over its stock performance.
Industry experts bullish on $500M KKR investment in Box, but stock market remains skeptical – TechCrunch
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Box Announces Strategic Partnership with KKR, Including $500 Million KKR-led Investment
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Reports have said that Box is under pressure from activist investor Starboard to explore a sale.
KKR s investment is a sign that Box doesn t want to sell, experts say at least not now.
Box on Thursday announced a $500 million investment from private equity firm KKR, in a deal that seems to put an end to speculation that the $3.5 billion enterprise cloud storage company will sell itself at least, for now.
Under the terms of the investment, which the company says will largely be used to finance share buybacks, KKR s John Park will join Box s board of directors. (Disclosure: KKR is a major shareholder in Axel Springer, Insider s parent company.)