Box Inc said on Thursday private equity giant KKR & Co Inc would lead a $500 million investment in the company and get a board seat, marking an end to the cloud services provider’s strategic review.
The KKR-led investment will be executed through convertible preferred stock and comes weeks after Reuters reported that Box was exploring a sale amid pressure from hedge fund Starboard Value LP over its stock performance.
Shares of the company fell more than 9% to $22.06, with D.A. Davidson & Co analyst Rishi Jaluria saying “there was likely some level of M&A premium baked into the share price.”
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