The acquisition is expected to enable Yayoi to gain KKR’s investment expertise in technology and software businesses globally
KKR is acquiring Yayoi through its Asia IV Fund. (Credit: Pexels from Pixabay)
US-based investment firm KKR has signed an agreement to acquire Japanese financial and accounting software service provider Yayoi from Orix for an undisclosed sum.
Earlier this month, Nikkei reported that Japanese leasing company Orix has finalised to sell Yayoi in a deal worth about JPY240bn ($2.1bn).
Yayoi is a major financial and accounting software provider for small and medium-sized enterprises (SMEs) and sole proprietors in Japan. It currently holds about 60% market share in cloud accounting software for sole proprietors.
With a customer base of more than 2.5 million registered users, the Yayoi Series is said to be one of the top-selling software products for cloud accounting and for desktop business in Japan.
Orix executive officer Nobuki Watanabe said: “Since we invested in Yayoi in December 2014, we have been working with the company’s management to significantly grow the business, leveraging our financial know-how and human resources.
“During this time, Yayoi has solidified its position as the firmly established leader in the domestic software service market for SMEs. As digitalization and cloud services grow in Japan, Yayoi now looks to a new phase of growth.
“We decided to proceed with this transaction with KKR in order to further support this new dynamic growth phase for Yayoi.”
The acquisition is expected to enable Yayoi to gain KKR’s investment expertise in technology and software businesses globally, including firms that are focused on accounting and business solutions to SMEs.
The investments made by KKR in the accounting and business software area for SMEs, include MYOB in Australia, Exact in the Netherlands, Visma in Scandinavia, and KiotViet in Vietnam.
KKR is acquiring Yayoi through its Asia IV Fund. BofA Securities Japan served as its financial advisor on the transaction.
The deal is expected to be closed on 1 March 2022, subject to regulatory approvals and customary closing conditions.
KKR Japan CEO and KKR Asia Pacific private equity co-head Hiro Hirano said: “SMEs account for the vast majority of companies in Japan.
“Considering this, we are pleased to add Yayoi to our global portfolio of software providers, and excited to support this important sector of the Japanese economy as SMEs strive to enhance their operational efficiency by digitally transforming their businesses.
“We see a terrific opportunity to increase Yayoi’s penetration across Japan and look forward to promoting the Company’s growth by leveraging our expertise in this segment.”
In June this year, KKR agreed to acquire a minority stake in French software company Cegid.