KKR (KKR.US) completes first stage acquisition target, successfully holding 35% of Fuji Software

KKR & Co. (KKR.US) successfully acquired a 35% stake in Fuji Software, a Japanese software developer, as part of its two-stage takeover offer, which was officially announced by Fuji Software on Wednesday. The move, which comes despite a higher private placement offer from rival Bain Capital in October, gives KKR enough shares to block Bain's bid, according to people familiar with the matter. Specifically, investors 3D Investment Partners and Farallon Capital, which together hold 32.7% of Fuji Software, have agreed to sell their stakes to KKR at 8,800 yen per share. Bain, which is interested in making a 9,450 yen per share offer, needs the approval of Fuji Software's management to proceed, which has not yet been granted. As a result, KKR's early move puts it in a strong position.