WASHINGTON (dpa-AFX) - Global investment firm KKR funds will lead a $500 million investment in Box, Inc. (BOX) in the form of convertible preferred stock. The preferred stock will be convertible into shares of Box common stock at a conversion price of $27.00 per share. The preferred stock carries a 3% dividend, which will be payable in kind or in cash, at Box's election. Upon closing of the deal, John Park, Head of Americas Technology Private Equity at KKR, will join Box's Board.
Box anticipates the investment to close in May 2021. The company plans to use 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.
Box reaffirmed its vision to deliver the Content Cloud and drive profitable growth. The company remains confident to achieve a revenue growth rate between 12-16%, with operating margins of between 23-27%, by fiscal 2024.
Box also announced that current director Bethany Mayer will be appointed as Chair of the Board, effective May 1, 2021. She joined the Board in April 2020 as an independent director.
Shares of Box, Inc. were down 5% in pre-market trade on Thursday.
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