Japanese PE J-Will Partners acquiring ND Software in $272.5m MBO deal

Japanese private equity firm J-Will Partners is acquiring ND Software, a tech company operating in the healthcare sector, in a 29.98 billion yen ($272.5 million) management buyout deal.

J-Will Partners, through its unit JKE, has made the tender offer at the price of 1,700 yen per share, which represents a 33.54 per cent premium to ND Software’s average stock price in the past six months.

ND Software shareholders, who collectively own 31.26 per cent of the company, including its president Hiroshi Sato, have sold the stake to JKE. Mori-no-Gakko, an asset management company in which Sato has 100 per cent voting rights, will invest in JKE after the completion of the deal. Sato will continue to manage ND Software.

The privatisation transaction is expected to close in March.

J-Will Partners plans to finance the acquisition with loans from Aozora Bank and The Bank of Fukuoka for a sum of up to 18.85 billion yen and capital of up to 12.4 billion yen.

ND Software was founded in 2006 as a manufacturer of electronic precision parts and has grown to a software developer engaged in the healthcare sector.

ND Software said the number of competitors had declined due to slowing growth in the number of welfare facilities. At the same time, however, there was an increasing social demands for comprehensive medical and nursing services from the baby-boomer generation.

The management buyout deal by J-Will Partners will help ND Software leverage the private equity firm’s experience in the healthcare sector, it said.

J-Will Partners was established in 2003, and today it manages aggregate funds exceeding 350 billion yen across approximately 170 investments. Its healthcare investments include Bonsejour and Seikatsu Kagaku Un-Ei.

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