German software buyout battle hits investor glitch

Software AG

10/05/2023 11:32

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Pamela Barbaglia
       LONDON, May 10 (Reuters Breakingviews) - Bain Capital
has launched a 2.5 bln euro knockout offer for IT group Software
AG. But the target seems oddly happy to stick with a lower bid
from existing backer Silver Lake. Shareholders can either take
an inferior price or risk a messy stalemate.        
    Full view will be published shortly.
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    CONTEXT NEWS
    Rocket Software, a U.S. company controlled by Bain Capital,
on May 9 submitted a non-binding offer to buy German IT services
group Software AG, trumping an earlier offer by Silver Lake.  
    Bain’s offer values Software AG at 34 euros a share, or 2.5
billion euros, 2 euros above a rival offer from Silver Lake. The
offer is subject to a minimum of 40% of shareholders accepting
it. In addition, Bain said it would pay 36 euros a share if
Silver Lake and the Software AG Foundation, which between them
control about 35% of the company’s stock, also tender their
shares.    
    Software AG said in a statement that the Bain proposal “does
not represent a superior offer” and that it would continue to
support the lower Silver Lake bid.  
    Software AG shares rose over 1% to 33.58 euros by 0840 GMT
on May 10.

 (Editing by Neil Unmack and Oliver Taslic)
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