Box raised $500 million led by private equity firm KKR

Cloud services provider Box has raised $500 million led by private equity giant KKR & Co.
Box at an IT trade event
The cloud services provider is planning to use most of the funds for a stock buyback.

The KKR-led investment will be executed through convertible preferred stock and comes weeks after Reuters reported that Box was exploring a sale amid pressure from hedge fund Starboard Value LP over its stock performance.

“The investment from KKR is a strong vote of confidence in our vision, strategy, and continued efforts to increase growth and profitability,” said Aaron Levie, the chief executive officer of Box.