Silver Lake, American private equity firm specializing in the technology sector, has announced the purchase of Software AG, a German company specialized in efficient technical solutions for companies. The deal has been closed by 30 euros per share in cashwhich represents a 50% premium over the closing price of the shares on April 21.
If the data is analyzed in comparison with the data of Thursday, it supposes a premium of 53%, since the closing price during that day was 19.59 euros. Thus, Software AG, whose management and supervisory boards support the offer, is valued by €2.2 billion (2.400 million dollars).
With this definitive measure, Silver Lake consummates its commitment to the German company after it had invested in February 2022 €344 million through a convertible bond. That first investment accounted for 9% of the shares of the software developer.
The offer is subject to a minimum acceptance threshold of 50% of all outstanding shares of Software AG. In addition, an action is added, including the participation that Software AG Foundation (independent charitable foundation and main shareholder of the German company) owns. And it is that he will sell to Silver Lake the 25.1% of the company. However, the foundation will continue to own 5% of the shares, while the retained 5% of the shares are subject to a block.
The Takeover bid it is subject to other customary market conditions and expectations, such as receipt of applicable regulatory approvals.
A bet for the future
That the American Silver Lake invests in Software AG is synonymous with the good work that it has been developing throughout its history. Since its inception in 1969, it has been dedicated to connecting and collaborating with more than 10,000 companies, helping them to grow at all times. Your suite of products in terms of integration and management of APIs, IoT and business transformation It allows them to create a continuous flow of data between people, departments, systems and devices.
In December 2022 it was announced that with the alliance between Software AG and the Spanish multinational IT consultancy, Corus Consultingclosed a magnificent year with an unprecedented joint offer, having clients of the stature of Sener, Cepsa and Iberdrola.
Jose Antonio Fernandez Abad, VP Business Development Iberia of Software AG, assured that the incorporation of Corus Consulting as one of the global Premier partners is a success, since it offers them guarantees to face the challenges satisfactorily. A new course for the German company that, since August 2022, has Sanjay Brahmawar as the new CEO, replacing Karl-Heinz Streibich.
the investor
In the case of Silver Lake, little precise presentation, since its origins go back to 1999, in full technological heyday of the nineties. Considered one of the largest technology investors in the worldhis previous participations have focused on companies such as Alibaba, City Football Group, Dell Technologies or Global Blue, among others.
It also highlights the minority purchase of 33.3% in the Australian Professional Leagues (APL)estimating the value of the competition and its affiliated holdings at more than $300 million.
In June 2022, Silver Lake was ranked 14th in the rankings PEI 300 from Private Equity International one of the most powerful private equity firms in the world.
In March the news was released that he had participated in the purchase of part of Qualtricsa customer experience management company, together with the investment company Canada Pension Plan Investment Board by $12.5 billion. In this agreement, Silver Lake was strengthened by previously owning 4% of the company’s sharesincluding the majority participation of the software provider ERP SAP.
The operation is estimated to be closed in the second half of 2023, which would mean a valuation for SAP of 7.7 billion dollars for his involvement with Qualtrics. The number of companies using Qualtrics software currently exceeds 18,000.
