Australian company Nitro Software rejected an alternative takeover bid by private equity (PE) firm Potentia Capital, which gave Nitro shareholders a choice of cash, shares or a combination of both at the same bid price.
The company also said it would recommend shareholders to vote in favor of Alludo’s A$526.9 million sweetened takeover bid, backed by KKR, and an OTC takeover.
The developments come after high inflation, weak consumer demand and the Ukraine crisis, which this year tumbled global equities, particularly in the technology sector, and made software companies acquisition targets for private equity firms.
Australia’s PE-backed deals segment has also picked up momentum this year, with much of the country’s sizeable PE-led activity seen with companies like KKR in the mix.
Alludo’s offer of A$2.15 per share beats major shareholder Potentia’s A$2 per share for the PDF and e-signature software signing company.
Alludo’s offer comes alongside a simultaneous off-market takeover bid for the software company.
Alludo’s bid requires 75 percent support from Nitro shareholders, while the off-market takeover bid requires a nod from 50.1 percent of investors.
Nitro shares, which are up around 26 percent since the takeover scramble between Alludo and Potentia began in October, have been trading flat.
