Rocket gives up counteroffer for Software AG, sells stake to Silver Lake

Software AG

19/06/2023 21:16

BERLIN, June 19 (Reuters) - Rocket Software said on
Monday it was giving up its counteroffer for Software AG
 SOWGn.DE  and selling its stake in the company to U.S.
financial investor Silver Lake instead.
    Silver Lake had in April announced a 2.4 billion euro 
($2.62 billion) takeover bid for Software AG, prompting a
counteroffer from Rocket Software which is owned by private
equity firm Bain Capital.
    Software AG's management and supervisory boards supported
Silver Lake despite Bain's higher offer of 36 euros per share,
drawing criticism from minority shareholders at the company's
annual general meeting last month.
    "Unfortunately, we were not successful in our efforts,"
Rocket Software chairman Andy Youniss said in a statement. 
    Rocket would sell and transfer its entire stake of 10.02% in
Software AG for 32 euros per share, the company said. 
    Silver Lake said it had as such now secured 41% of shares in
Software AG, noting its cash offer to other Software AG
shareholders remained open until June 28.
    Its convertible bonds in Sofware AG could also convert into
10% of total current share capital, Silver Lake said.
    "Silver Lake’s investment in Software AG reflects our
commitment to working with founders and management teams to help
them build and grow great companies," said Christian Lucas, EMEA
co-head at Silver Lake.
 ($1 = 0.9159 euro)

 (Reporting by Alexander Huebner and Sarah Marsh; editing by
Jonathan Oatis)
 ((sarah.marsh@thomsonreuters.com; +49 30 220133621; Reuters
Messaging: sarah.marsh.thomsonreuters.com@reuters.net))