KKR has successfully acquired a majority stake in Fuji Soft, aiming to take the Japanese software company private. This move comes shortly after Bain Capital withdrew from a prolonged bidding war for Fuji Soft, which is valued at over $4 billion.

On Thursday, KKR announced it would hold a 58% stake in Fuji Soft following a successful tender offer. The firm plans to acquire the remaining shares through a squeeze-out process. This acquisition reflects a broader trend of foreign private equity firms engaging in Japanese mergers and acquisitions, as many large companies are divesting noncore businesses or opting to exit the public market.

To strengthen its bid, KKR raised its tender-offer price to 9,850 yen (approximately $65.03) from 9,451 yen and extended the tender-offer period. Earlier in November, KKR had already secured over one-third of Fuji Soft's shares, acquiring stakes from significant shareholders like 3D Investment Partners and Farallon Capital Management.

Hiro Hirano, KKR's deputy executive chairman for Asia Pacific, expressed commitment to enhancing Fuji Soft's corporate value under KKR's ownership. KKR estimates that a minimum ownership stake of around 53% is necessary to proceed with the squeeze-out, with a shareholders' meeting scheduled for late April.

Fuji Soft, which employed nearly 18,000 people at the end of 2023, provides IT services across various industries. The company reported a 6.5% increase in operating profit to 22 billion yen (about $145.2 million) for 2024, alongside a 6.2% rise in revenue to 317 billion yen.

Bain Capital announced its decision not to pursue a tender offer after discussions with Fuji Soft's founder, Hiroshi Nozawa, who had intended to take the company private with Bain. The firm had previously indicated plans to initiate a tender offer at 9,600 yen per share, contingent on certain conditions.

As of Thursday, Fuji Soft's shares remained stable, closing at 9,795 yen.