Private Equity: Nutanix Gets $750 Million Investment from Bain Capital

Nutanix — a leading cloud computing company — announced Bain Capital Private Equity’s $750 million investment in the company.  Chairman and CEO of Nutanix Dheeraj Pandey claimed “Bain Capital Private Equity has deep technology investing experience and a strong track record of helping companies scale…Bain Capital Private Equity’s investment represents a strong vote of confidence in our position as a leader in the hybrid cloud infrastructure (HCI) market and our profound culture of customer delight.”  

Bain Capital finds Nutanix to be a promising company.  In particular, managing director David Humphrey likes Nutanix’s differentiated hybrid cloud platform.  This cloud platform is flexible and can pair well with other platforms.  According to managing director Max de Groen, “We look forward to working closely with the Board and the management team to build on Nutanix’s leadership position and realize its strong vision for the future.”  Humphrey and de Groen will join the Nutanix Board of Directors.  

Bain Capital will invest the $750 million through Convertible Senior Notes with an initial conversion price of $27.75 per share.  This price is a 30.6 percent premium to Nutanix’s volume-weighted average price.  The notes will have a 2.6 percent annual interest rate.  Ultimately, they will be paid through in kind Notes owned by Bain Capital Private Equity.