Potentia outbids KKR-backed Alludo with $364m offer for Australia's Nitro Software

Potentia outbids KKR-backed Alludo with $364m offer for Australia's Nitro Software

Sydney, Australia. Photo by Liam Pozz on Unsplash

Australia’s Nitro Software Ltd said on Thursday that private equity firm Potentia Capital raised its takeover offer for the software maker to A$532.3 million (about $364 million), trumping a rival offer by KKR Inc-backed Alludo.

Potentia and Alludo have been involved in a bidding war for Nitro since last October, as high inflation and weak consumer demand have made technology firms potential buyout targets.

In the latest salvo, Potentia, which has a 19.31% stake in Nitro, offered A$2.17-per-share, trumping Alludo’s offer of A$2.15, which Nitro shareholders rejected a few weeks back.

Potentia’s latest offer was superior to Alludo’s, Nitro’s board said, despite it being at the lower end of the A$2.20- to A$2.30-per-share bid that had been signaled earlier.

Nitro’s board, however, recommended shareholders take no action on either offer.

Potentia’s offer is conditional on Nitro’s board unanimously recommending its shareholders accept the latest offer, in the absence of a superior proposal.

If the offer is declared unconditional, Nitro shareholders that accept the current bid will receive any subsequent increase in the offer price to A$2.20 or A$2.25, Potentia said.

Nitro’s shares were largely flat at A$2.20 as at 0448 GMT.($1 = A$1.4641)


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