KKR’s $500 Million Investment in Box

Wilson Sonsini Goodrich & Rosati advised Box, Inc. on the deal, while Simpson Thacher & Bartlett LLP advised KKR.

Box, Inc., the leading Content Cloud, and KKR, a leading global investment firm, announced an agreement for KKR funds to lead a $500 million investment in the company in the form of convertible preferred stock. The investment from KKR will advance the company’s strategy to deliver the Box Content Cloud and enable customers to modernize how they work and drive digital transformation throughout their organizations.

Box anticipates using substantially all of the proceeds to fund a share repurchase through a “Dutch auction” self-tender of up to $500 million of its common stock, with specific amount and pricing of the self-tender to be determined based on market conditions and stock prices at the time when the self-tender is launched. The self-tender is expected to commence after Box releases its fiscal first quarter financial results in May 2021. Further details on the self-tender will be included in filings with the U.S. Securities and Exchange Commission at the time of its commencement.

Box is a leading cloud content management platform that enables organizations to accelerate business processes, power workplace collaboration, and protect their most valuable information, all while working with a best-of-breed enterprise IT stack. In connection with this transaction, John Park, Head of Americas Technology Private Equity at KKR, is expected to join the board of Box.

The Wilson Sonsini team that represented Box in the transaction included: Marty Korman (Picture), Rich Mullen, Ross Tanaka, Tracy Sevush, Elia Perez Villamarin, Jose Macias, Lauren Lichtblau, Cody Gaynor, Erik Franks,Michael Rosati, Jill Fulwiler, David Berger, Dave Strong, Joseph Mandry, Scott Sher, Chris Williams, Deirdre Carroll and Stacy Ruegilin.

Simpson Thacher & Bartlett LLP advised KKR with Marni Lerner, Ravi Purushotham, Jun Won Kim and Alexander Porro (M&A); Marcy Geller and Joseph Tootle (Tax); Jonathan Lindabury, Mimi Cheng and Caitlin Wood (Derivatives); Joseph H. Kaufman (Capital Markets); Jennifer Nadborny (Public Company Advisory Practice); Lori Lesser (Intellectual Property); and Peter Guryan, Kelly Karapetyan and Joshua Hazan (Antitrust).

Involved fees earner: Mimi Cheng – Simpson Thacher & Bartlett; Marcy Geller – Simpson Thacher & Bartlett; Peter Guryan – Simpson Thacher & Bartlett; Joshua Hazan – Simpson Thacher & Bartlett; Kelly Karapetyan – Simpson Thacher & Bartlett; Joseph Kaufman – Simpson Thacher & Bartlett; Jun Won Kim – Simpson Thacher & Bartlett; Marni Lerner – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Jonathan Lindabury – Simpson Thacher & Bartlett; Jennifer Nadborny – Simpson Thacher & Bartlett; Alexander Porro – Simpson Thacher & Bartlett; Ravi Purushotham – Simpson Thacher & Bartlett; Joseph Tootle – Simpson Thacher & Bartlett; Caitlin Wood – Simpson Thacher & Bartlett; David Berger – Wilson Sonsini Goodrich & Rosati; Deirdre Carroll – Wilson Sonsini Goodrich & Rosati; Erik Franks – Wilson Sonsini Goodrich & Rosati; Jill Fulwiler – Wilson Sonsini Goodrich & Rosati; Cody Gaynor – Wilson Sonsini Goodrich & Rosati; Martin Korman – Wilson Sonsini Goodrich & Rosati; Lauren Lichtblau – Wilson Sonsini Goodrich & Rosati; Jose Macias – Wilson Sonsini Goodrich & Rosati; Joe Mandry III – Wilson Sonsini Goodrich & Rosati; Rich Mullen – Wilson Sonsini Goodrich & Rosati; Michael Rosati – Wilson Sonsini Goodrich & Rosati; Stacy Ruegilin – Wilson Sonsini Goodrich & Rosati; Tracy S. Sevush – Wilson Sonsini Goodrich & Rosati; Scott Sher – Wilson Sonsini Goodrich & Rosati; David Strong – Wilson Sonsini Goodrich & Rosati; Ross Tanaka – Wilson Sonsini Goodrich & Rosati; Elia Villamarin – Wilson Sonsini Goodrich & Rosati; Christopher Williams – Wilson Sonsini Goodrich & Rosati;

Law Firms: Simpson Thacher & Bartlett; Wilson Sonsini Goodrich & Rosati;

Clients: Box, Inc.; KKR;

Author: Martina Bellini