US-based Silver Lake, a private equity firm, announced the acquisition of over 63 per cent of shares in Software AG, a software company based in Darmstadt.
This majority stake does not include Silver Lake’s convertible bonds, which can convert into 10 per cent of the total current share capital.
Silver Lakes says the final results announcement for the Initial Acceptance Period will be published on July 3, 2023.
The US company reiterates that it does not require a domination and profit and loss transfer agreement (DPLTA) to finance its offer or achieve its economic and strategic objectives.
However, the company intends to delist Software AG, currently listed on the MDax, as soon as possible.
Software AG‘s acquisition ended after a fierce war between Rocket Software, a competitor owned by Bain Capital, and Silver Lake.
The Software AG Foundation likely played a crucial role in Silver Lake’s success.
Initially, Silver Lake offered €30 per share, valuing Software AG at €2.2 billion.
The Executive Board and the Supervisory Board of Software AG endorsed Silver Lake’s offer from the beginning. They entered into a purchase agreement with Silver Lake, selling over a quarter of its shares.
Consequently, Rocket Software countered with a higher offer at €36 per share. However, in May, Software AG announced its preference for Silver Lake’s increased offer of €32 per share.
During Software AG’s annual shareholders’ meeting held last month, the company’s management strongly criticised shareholders for their behaviour during the bidding process, reports MarketScreener.
Silver Lake: Technology investment firm
Silver Lake is a global technology investment firm with approximately $98B in combined assets under management and committed capital.
The equity firm’s portfolio companies collectively generate more than $276B annually and employ approximately 710,000 people globally.
Software AG: Seamlessly integrate data, applications, and more
Founded in 1969, Software AG’s technology creates the digital backbone that integrates applications, devices, data and clouds; empowers streamlined processes; and connects “things” like sensors, devices and machines.
The company has about 5,000 employees across more than 70 countries and annual Group revenue of €950M.
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