November 28, 2021, 18:12

    Software AG can log onto buyout boom

    Software AG can log onto buyout boom

    LONDON, Nov 26 (Reuters Breakingviews) – The software sector is programmed for a deals boom. Germany’s Software AG (SOWGn.DE) is considering a sale, Bloomberg reported on Thursday, citing people familiar with the matter. Patchy performance and ageing founder Peter Schnell, whose charitable foundation is a major shareholder, may sway the decision. The 3 billion euro maker of enterprise software has fallen behind bigger rival SAP (SAPG.DE), which trades at 19 times EBITDA according to Refinitiv data. Software AG is valued at 13 times.

    Fortunately for Schnell, software companies are in hot demand from buyers including private equity groups like KKR (KKR.N) read more , Warburg Pincus and TPG. British robotics software maker Blue Prism (PRSMB.L) on Thursday agreed to a 1.2 billion pound offer from buyout firm Vista Equity. Enterprise software is a fragmented business and Schnell’s group could bring rivals a broader suite of products to sell to their clients. Alternatively, Software AG could try scaling up while still in public hands. (By Dasha Afanasieva)

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