(Reuters) -Box Inc said on Thursday private equity giant KKR & Co (NYSE:) Inc led a $500 million investment in the cloud services provider, with the company planning to use most of the funds for a stock buyback.
A self-tender for the buyback, whose pricing and amount of shares has not yet been decided, will begin after Box releases its first-quarter results in May this year.
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.
“The investment from KKR is a strong vote of confidence in our vision, strategy, and continued efforts to increase growth and profitability,” said Aaron Levie, the chief executive officer of Box.
After the investment, which is expected to close in May, KKR’s Head of Americas Technology Private Equity John Park will join Box’s board, making him its tenth member.
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