Box for Sale: Private Equity, Cloud Software Interested?

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Box explores a potential sale under pressure from the hedge fund Starboard value, Reuters reports.

The names of potential buyers were not mentioned in the report, although the exploratory talks apparently include IT companies and private equity firms. Box’s current valuation is $ 3.78 billion, according to Yahoo Finance, which suggests that an actual selling price would involve bids of at least $ 4 billion or more.

Box’s revenue was $ 198.9 million in the fourth quarter of fiscal 2021, up 8% from the fourth quarter of fiscal 2020, the company said in early March 2021. Box has spent the past few years moving from syncing and sharing files to a full-fledged content management platform. Still, Box’s stock is trading around $ 4.50 below its all-time high of around $ 28.12 in May 2018. And the current price is only slightly above that of an IPO in 2016, Reuters note.

Competition Box, M&A Moves

In addition to competing with its traditional rival Drop box, the company has also pushed to counter cloud file sharing systems from Microsoft and Google, among others. For its part, Dropbox cut 11% of its workforce in January 2021.

Box has also been active on the M&A front. The company announced plans to acquire cloud-based electronic signature software company SignRequest for $ 55 million in February. This agreement, which should be concluded in May 2021, mainly involves DocuSign and Dropbox, which acquired the HelloSign electronic signature startup for $ 230 million in 2019.

Box did not comment on the Reuters report that the company is considering a business sale.


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