Silver Lake plans acquisition of Software AG
US investor Silver Lake acquires Software AG - German technology company hopes for rising profits

U.S. financial investor Silver Lake has submitted a takeover bid for Software AG. The offer amounts to €30 per share and represents a takeover volume of €2.2 billion. The takeover is considered friendly and is supported by the company's management. The foundation of Software AG co-founder Peter Schnell is also on board. The foundation intends to sell 25.1 percent of the shares in Silver Lake and retain a five percent stake. In the medium term, the company's management expects profits to rise again and an operating return on sales in the upper range of the 25 to 30 percent range. The acquisition is also expected to facilitate the planned transformation of the business model from license sales to a subscription model (software-as-a-service, SaaS).
Silver Lake had already purchased convertible bonds of Software AG for €344 million in February 2022, which would represent around nine percent of the issued shares after conversion. This means that the Americans' chances of the takeover succeeding are very good. The offer is subject to a minimum acceptance threshold of 50 percent plus one share.
The takeover of Software AG would expand Silver Lake's portfolio, which already holds shares in companies such as AirBnB, Unitymedia and the long-distance bus operator Flix. The U.S. financial investor also bought Software AG's larger rival SAP's data analytics subsidiary Qualtrics for $7.7 billion a few weeks ago and also wants to delist the company. Software AG is also expected to be delisted after the transaction is expected to close in the fourth quarter. The takeover is seen as a surprise to the market, as the company has not been able to tap into the high growth potential for itself in business areas such as data analytics in recent years. Analysts therefore recommend that investors accept the offer.
