American private equity firm Silver Lake has offered to purchase German business software development company Software AG in a deal worth around $2.4 billion USD. The offer price of 30 euros per share in cash from the Silver Lake-controlled holding company Blitz 22-449 SE represents a premium of 53% compared to a recent closing price of Software AG’s stock. The firm previously invested 344 million euros in the software developer's convertible bond, which would convert into nearly 9% of its issued shares, according to the company.
As part of the deal, Silver Lake will purchase a 25.1% stake in Software AG from the Software AG Foundation, an independent charitable foundation and the company’s principal shareholder. The purchase is contingent on a minimum acceptance threshold of 50% of all outstanding shares plus one, including the stake. The German company claims that its board is fully supportive of the deal and will recommend it to the company’s shareholders; the foundation will retain 5% of the stock, as well.
However, rival Bain & Company has also collected an unspecified stake in Software AG and is trying to purchase the company, as well, but with Silver Lake’s latest offer, it seems unlikely that the firm will succeed.