A bidding competition is brewing for the Darmstadt-based company.
(Photo: dpa)
Frankfurt Bain Capital has reportedly submitted a takeover bid for Software AG that trumps Silver Lake’s €2.2 billion offer. The Bloomberg news agency reported on Thursday, citing informed circles. This would take the takeover battle between the two financial investors into the next round.
The Boston-based buyout firm is offering around €34 per share — a total of €2.5 billion — higher than Silver Lake’s €30 offer, it said. Bain has set up financing for the offer and would merge the Darmstadt-based software developer with its portfolio company Rocket Software.
Software AG shares rose by up to 7.8 percent to €35.88, which is still above the price Bain had envisaged.
Silver Lake now has 30 percent of the share capital on its side after acquisitions in the past week. This includes a 25 percent stake from the Software AG Foundation, which Silver Lake secured. A merger of Rocket Software with Software AG could be difficult given this position.
According to Software AG CEO Sanjay Brahmawar, Silver Lake is “in line” with the company’s strategic direction. The technology-oriented private equity firm invested EUR 344 million in the company at the end of 2021 via a convertible bond. Silver Lake CEO Christian Lucas later became chairman of the board.
Bain could try to join forces with Silver Lake or take Silver Lake’s share. According to the report, negotiations are still ongoing and it is not certain that they will result in a transaction.
A Bain representative declined to comment on the information to Bloomberg. A spokesman for Software AG did not immediately respond to inquiries.
More: Financial investor Silver Lake wants to take over Software AG completely