Advent International, Bain Capital, EQT AB and KKR are candidates for a takeover of Japan’s Trend Micro. The security company has been considering delisting from the Tokyo stock exchange since mid-2024.
Currently, Trend Micro is worth 1.63 trillion yen, or 10.2 billion euros. News of the possible takeover has already pushed the stock price up by more than 20 percent. Reuters was the first to report on the candidacy of various private equities, as was the case when Trend Micro decided in the summer of 2024 to consider an acquisition.
Candidates
US-based firms Advent International and Bain Capital and Sweden’s EQT AB are the main candidates. American party KKR Investment is also mentioned by two Reuters sources. Of course, all private equities could still drop out. It is possible that Trend Micro will eventually abandon any deal as well.
A successful deal would bode well for the investment climate in 2025, especially with a headline figure to accompany it. After busy checkbooks during the pandemic period, high interest rates from central banks have created a less favorable financial picture among private equities over the past two years. Now that the purse strings can be drawn again, it seems investor companies have the same targets in their sights.
Resurgence
Trend Micro’s shares, since the Reuters news, are worth as much again as they were all the way back in 2000. Still, the stock is worth a third less than it was in August 2000, and the question is whether this week’s resurgence will last. It’s not uncommon for stocks to soar when positive news of a possible takeover hits, which disappears like snow in the sun when it backfires.
Indeed, Trend Micro continues to face problems; it is considering delisting itself for a reason. The Japanese company’s profitability lags behind competitors such as CrowdStrike, Palo Alto Networks and Microsoft.
Also read: Palo Alto Networks debuts Cortex Cloud: what is it?