Nitro Rejects Potentia’s Counter Proposal, Favors KKR-Backed Firm

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Australia’s Nitro Software has rejected a takeover alternative offer from Potentia Capital, private equity (PE) firm, stating that it is not in the best interest of shareholders.

The offer included a cash payment, stock options or a combination of both, all at the same offer price. Potentia Capital had hoped to take over Nitro Software to expand its operations and gain access to new markets.

However, Nitro Software’s board of directors determined that the offer needed to be more suitable given current market conditions.

Australia’s Nitro Software said on Wednesday it would recommend its shareholders to vote for KKR Inc-backed (KKR.N) Alludo’s all-cash, sweetened takeover offer of A$526.9 million ($354.55 million).

Australia’s PE-backed deals segment has seen a significant increase in activity this year, with several sizable PE-led transactions taking place across the country. KKR & Co (KKR.N) has recently been at the forefront of these deals, as evidenced by its involvement in Nitro Software’s takeover.

Nitro Software CEO David O’Sullivan believes the new bid is in the best interest of their shareholders and positions them well for long-term growth and success. “We believe Alludo’s proposal will provide maximum value for our shareholders,” he said in a statement on Wednesday. 

Nitro Software provides document productivity solutions aimed at helping businesses and individuals work smarter while transforming how they collaborate and interact with documents digitally.

It is one example of how tech firms can generate significant returns for their investors even during challenging times like these – provided they make sound decisions when evaluating potential deal terms and offers from third parties like Potentia Capital or a KKR-backed firm in this case.

Nitro Software has been at the centre of a takeover tussle between Australia-based PE firm Potentia Capital and KKR Inc-backed Alludo since October this year. Since then, Nitro’s shares have risen by approximately 26%, with the stock trading flat in Wednesday’s morning trades. 

For now, all eyes will be on Alludo and how they help propel Nitro Software forward, particularly in terms of growth and success over the extended period.

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