Australia’s Nitro Software rejected an alternative takeover offer from private-equity (PE) firm Potentia Capital, which gave Nitro shareholders the choice of an all-cash, stock, or a combination of both, at the same offer price.
The company also said it would recommend shareholders to vote for KKR-backed Alludo’s all-cash, sweetened takeover offer of A$526.9 million and an off-market takeover.
The developments come after high inflation, weak consumer demand, and the Ukraine crisis slammed global stocks this year, particularly in the tech sector, setting up software firms to be acquisition targets for private-equity firms.
The PE-backed deals segment in Australia too picked up pace this year, with a major chunk of sizable PE-led activity in the country seeing the likes of KKR being in the mix.
Alludo’s proposal of A$2.15 per share outbids top shareholder Potentia’s A$2 per share for the PDF and e-signature software signing company.
Alludo’s offer is alongside a simultaneous off-market takeover offer for the software company.
Alludo’s offer requires 75 percent support from Nitro shareholders, while the off-market takeover offer needs a nod from 50.1 percent of investors.
Nitro shares, which have risen about 26 percent since the takeover tussle between Alludo and Potentia began in October, were trading flat.