EQT raises Kakaku.com bid to ¥3,450, topping Bain-LY offer

Key Takeaways

• EQT raised its tender offer to ¥3,450 per share, a 15% increase from its original bid and above the rival ¥3,384 offer
• The revised bid values Kakaku.com at approximately ¥682 billion ($4.2 billion)
• EQT has secured all regulatory clearances, while the Bain-LY consortium's offer won't launch until September

EQT has raised its tender offer for Kakaku.com to ¥3,450 ($21.25) per share, leapfrogging a competing bid from the Bain Capital and LY Corp consortium in what has become one of Japan's most contested tech buyouts this year. The Swedish private equity firm's revised offer values the Japanese price comparison and restaurant review platform at roughly ¥682 billion ($4.2 billion).

The bid increase, announced through EQT's offer vehicle Kamgras 1 K.K., represents a 15% jump from the original ¥3,000 per share proposal. It also tops the ¥3,384 per share offer that LY Corp and Bain Capital put forward on July 1.

Why EQT is pushing for a faster close

EQT is betting that speed and certainty matter as much as price. The firm said it has already obtained all required regulatory clearances for the deal. The competing consortium, by contrast, cannot launch its offer until September at the earliest and still faces regulatory hurdles.

“Our proposal provides Kakaku.com shareholders with an attractive combination of value, certainty and timing.”

— Tetsuro Onitsuka, Partner, EQT Private Capital Asia

EQT extended its tender offer deadline to August 3, giving shareholders additional time to decide. The firm framed the higher price as a way to "further enhance execution certainty" and support Kakaku.com's long-term growth.

What makes Kakaku.com worth $4.2 billion?

Kakaku.com operates three major digital properties. Its namesake site is Japan's largest price comparison platform, a business model that generates revenue from merchant referrals and advertising. Tabelog functions as Japan's dominant restaurant review platform, often compared to Yelp in the U.S., with over 25 million monthly users. The company also runs Kyujin Box, a job search service.

This combination of consumer data, established brands, and online marketplace economics makes Kakaku.com attractive to private equity. Digital platforms with high user engagement and recurring traffic patterns tend to generate predictable cash flows, the kind that PE firms can optimize and eventually sell at a premium.

The Bain-LY consortium hasn't conceded

The rival bidders have a card left to play. The Bain Capital and LY Corp consortium said it would raise its offer to ¥3,500 per share if major shareholder KDDI agrees to support the transaction. That would put them back on top, at least on price.

Kakaku.com's board has adopted a neutral stance after withdrawing its earlier recommendation of EQT's original ¥3,000 bid. The board is in discussions with both parties. LY Corp, formed from the merger of Yahoo Japan and LINE, would bring strategic synergies through its existing digital services and SoftBank affiliation.

EQT's Japan track record

EQT opened its Tokyo office in 2006 and has been building momentum in Japanese buyouts. The firm recently completed take-private deals for elevator manufacturer Fujitec, healthcare platform CareNet, and confectionery company Mamezo.

The Kakaku.com bid comes from EQT's BPEA Private Equity Fund IX, which closed in April with $15.6 billion in commitments. EQT describes it as the largest private equity fund ever raised for the Asia Pacific region. Digital Garage, a Japanese fintech and digital marketing company, is partnering with EQT in this transaction.

EQT pointed to its experience with digital marketplace investments including PropertyGuru in Southeast Asia, idealista in Spain, and Casa.it in Italy as evidence it can grow Kakaku.com's platform businesses.

Japan's M&A climate is driving competition

This bidding war reflects a broader shift in Japan's corporate landscape. Government-backed governance reforms have pushed companies to improve shareholder returns, making Japanese firms more receptive to buyout offers. Foreign private equity firms have responded by increasing their activity, competing for technology and consumer businesses that were previously difficult to acquire.

The Kakaku.com deal will likely set a template for future contests. Price matters, but so does timing, regulatory readiness, and the strategic vision each bidder can articulate. Shareholders now face a choice between a certain premium today and a potentially higher but less certain payout months from now.

Frequently Asked Questions

What is Kakaku.com?

Kakaku.com operates Japan's largest price comparison website, the Tabelog restaurant review platform, and the Kyujin Box job search service. The company generates revenue from merchant referrals, advertising, and subscription services across its digital properties.

How much is EQT bidding for Kakaku.com?

EQT's revised offer is ¥3,450 ($21.25) per share, which values the company at approximately ¥682 billion ($4.2 billion). This is up from EQT's original bid of ¥3,000 per share.

Who is competing with EQT for Kakaku.com?

A consortium led by LY Corp (a SoftBank subsidiary formed from the Yahoo Japan and LINE merger) and Bain Capital is bidding ¥3,384 per share, with a conditional offer to raise it to ¥3,500 if shareholder KDDI supports the deal.

When will the Kakaku.com acquisition close?

EQT's tender offer runs through August 3 and has received all regulatory approvals. The competing Bain-LY consortium cannot launch its offer until September and still needs regulatory clearances.

Why are private equity firms targeting Japanese tech companies?

Japan's corporate governance reforms have made companies more open to buyout offers and increased pressure on boards to maximize shareholder value. Established digital platforms like Kakaku.com offer predictable cash flows that PE firms can optimize.

Source: Crowdfund Insider