Oct 31 (Reuters) – Nitro Software in Australia (NTO.AX) said on Monday that it would back a nearly A$500 million ($320.15 million) bid from KKR Inc. (KKR.N) Alludo which beat out an earlier offer from major shareholder Potentia Capital Management.
Alludo made the offer early Monday at A$2.00 per share, which it said was an 11% premium to Potentia’s revised offer of A$1.80 per share.
The offer is a 77% premium to Nitro’s share price on Aug. 29, the day before Potentia announced its first offer of A$1.58 per share.
Nitro on Monday rejected Potentia’s offer and said Alludo would be granted three weeks of exclusive access to a data room to perform due diligence.
Shares of Nitro Software rose 19.1% to A$2.06 in morning trading, the highest point since January.
Nitro shares have lost 16% so far in 2022.
In a statement, Nitro said Alludo’s offer was funded entirely by “equity sources,” without identifying the backers.
However, KKR will provide financing for the bid, two sources with direct knowledge of the matter told Reuters, requesting anonymity because the information has not been made public.
KKR declined to comment.
Nitro is a PDF and electronic signature software company that claims to have 13,000 business customers and 3 million licensed users, according to its website.
Alludo said its offer requires the support of 75% of investors to be approved, according to the scheme of arrangement. If that doesn’t happen, it will proceed with an off-market takeover that requires 50.1% shareholder support.
Potentia built a 19.8% stake in Nitro and declined to comment on Alludo’s offer.
Last week, ELMO Software (ELO.AX) agreed to an A$500 million takeover of Los Angeles-based K1 Investment Management.
($1 = 1.5618 Australian dollars)
Reporting by Scott Murdoch in Sydney and Harshita Swaminathan; edited by Diane Craft, Sam Holmes and Sherry Jacob-Phillips
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