- U.S. tech investor Silver Lake acquires Software AG, holding a considerable majority stake in the German software company.
- Software AG’s previous co-innovation projects with IOTA will likely continue under the new ownership, signaling exciting possibilities for the Internet of Things (IoT) and blockchain sectors.
U.S. Tech Investor Silver Lake Triumphs in Software AG Acquisition
In a decisive move that could significantly alter the future of Internet of Things (IoT) and blockchain sectors, U.S. tech investor Silver Lake now holds a dominant stake in Software AG, one of Germany’s oldest software companies.
Aktuell sehe ich keine Gefahr.@silverlake_news sieht das große Integrationspotenzial der @SoftwareAG seit ihrem Einstieg – und dazu gehört auch die Integration von off-chain (off-#Tangle) Welt (= #ERP etc) mit der on-chain Welt.
Unsere #IOTA Projekte im #GaiaX Umfeld laufen 🙂 https://t.co/Uc9nvmyfFq
— Christoph F. Strnadl @cfs@techhub.social (@archimate) July 25, 2023
The acquisition, first initiated in April, is now essentially complete, following some minor hurdles. As a result, Software AG, based in Darmstadt, will soon be withdrawn from the MDAX and TecDAX stock indices.
Silver Lake executed this acquisition through its holding company, Mosel Bidco SE. By the end of June, Mosel Bidco SE had secured a majority stake of roughly 63% in Software AG. As of the second acceptance deadline on July 17, the investment company now holds 84.29% of Software AG’s shares. Assuming no intervention from the relevant authorities, this acquisition, which includes debts and is worth over three billion Euros, will be completed within the year.
Silver Lake’s bid for Software AG was a voluntary takeover offer, proposing €30.00 per share for all issued shares, a figure that was more than 50% above the closing price just prior to the offer. This acquisition process stirred some unease when investors from Bain Capital offered a non-binding counteroffer of €34 via their portfolio company, Rocket Software. Ultimately, the acquisition concluded with a final price of €32 per share, over 60% above the closing price prior to the offer.
This acquisition has not only brought about a change of ownership for Software AG but also represents a significant moment for IOTA, given its close association with the company. Software AG had previously announced several co-innovation projects with IOTA, and its platform, Cumulocity, was set to integrate IOTA technology for developing a machine-to-machine (M2M) economy. This integration included “blockchain and token-related capabilities” for identity identification, data provenance, integrity, security, and micropayments.
In light of this development, the continuity of these projects, and the synergy between Software AG and IOTA, under Silver Lake’s leadership is certainly a point of interest. This acquisition may serve to boost Software AG’s transformation efforts into a Software-as-a-Service (SaaS) oriented company, and its focus on the market for cloud applications and data integration.
Whether Silver Lake will harness IOTA’s potential to enhance Software AG’s digital business remains to be seen. However, given the investor’s strong track record and the promising prospects of blockchain and IoT, the future indeed looks promising.
