Private equity firm Silver Lake has agreed a deal to acquire German business software developer Software AG.

The deal values Software AG at €2.2 billion, with Silver Lake offering a price of €30 per share – a premium of 53 per cent to Software AG’s closing price of €19.59 on Thursday.

Silver Lake, whose portfolio includes investments in FinTech Klarna, e-commerce firm Getir and enterprise software business Airtable among others, previously invested €344 million in the company’s convertible bond in February 2022. The private equity firm said that this investment would be converted and represent around 9 per cent of issued Software AG shares.

Software AG’s principal shareholder, an independent charitable foundation set up by Software AG co-founder Dr Peter Schnell, will sell a 25.1 per cent stake to Silver Lake. The foundation will retain a five per cent stake in the software developer.

In a statement, Software AG chief executive Sanjay Brahmawar confirmed that the board intended to recommend the offer to the company’s shareholders, adding “With deep expertise in the integration market, experience in transitioning businesses to SaaS-first models and extensive M&A capabilities, Silver Lake is a valuable long-term partner for Software AG and our customers.

“A successful transaction would enable us to accelerate the execution of our strategy, double down on innovation in integration for customers, and provide greater opportunities to attract and develop talent.”

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