Thursday, March 28, 2024
HomeBusinessBox Draws In $500 Million Investment From KKR

Box Draws In $500 Million Investment From KKR

Box plans to use the investment for share buyback. This would also let hedge fund Starboard retain its 7.9% stake within the company.

Private equity giant KKR would lead a $500 million investment within Box and acquire a seat in its board, marking an end to the cloud services provider’s strategic review.

The KKR-led investment is going to be executed through convertible preferred shares. Box plans to use the investment for share buyback. This would also let hedge fund Starboard retain its 7.9% stake within the company.

Box has also been working with Morgan Stanley to explore options and decided to accept the investment from KKR instead of an outright sale, so it can remain a public company and specialize in expanding its cloud service suite. Bethany Mayer, who joined Box’s board as a director after an agreement with Starboard last April, would replace Chief Military Officer Aaron Levie as chair from May Day.

Demand for Box’s offerings including cloud storage, file sharing, and cloud backup services have risen during the Covid-19 pandemic as employees of the numerous companies work from home. The company expects a rate of growth of 12-16% by 2024. After the investment, John Park will join Box’s board as its tenth member, who is presently KKR’s Head of Americas Technology Private Equity.

Source: Business World

RELATED ARTICLES
- Advertisment -

Most Popular

Recent Comments