Advised EQT on its acquisition of SUSE, a leading global provider of open source infrastructure software for large enterprises, from Micro Focus (LSE: MCRO)
Jul 2018
acquired
$2,535 million
  • Sector: Infrastructure Software & Cybersecurity
  • Deal Type: Public Deals; Private Equity Deals
  • Engagement type: Buyside
  • Size: $2,535 million
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Arma Partners is pleased to announce that it has acted as financial advisor to EQT on its proposed acquisition of SUSE, a leading global provider of open source infrastructure software for large enterprises, from Micro Focus (LSE:MCRO) for an enterprise value of $2.535 billion. The transaction is subject to Micro Focus shareholder and customary regulatory approvals.

Founded in 1992, SUSE is the world‚ first provider of an enterprise-grade open source Linux operating system. SUSE is today a market leader in enterprise-grade, open source software-defined infrastructure and application delivery solutions for on premise and cloud-based workloads, including solutions for container and application delivery technology.

EQT will support SUSE‚’s next period of growth and innovation as an independent company both organically and through add-on acquisitions to further build SUSE’s public cloud business and to expand its next-generation product offerings in order to strengthen SUSE as a leading provider commercializing open source for enterprise customers.

This transaction represents a major milestone for Arma, as SUSE was Arma’s first client at our firm‚ inception 15 years ago, when we advised its then investors led by Apax Partners on the $210 million sale to Novell, a landmark transaction which put our young firm, then employing four people, on the map. This is also the third £1 billion+ software transaction announced by Arma in as many months, (following the sales of Iris to ICG for £1.3 billion and Access to Hg for £1 billion) reinforcing our position as Europe’s leading software advisory firm, now employing c. 90 people delivering unrivalled sector expertise and transaction execution capabilities.

-Founded in 1992, SUSE is a market leader in enterprise-grade, open source software-defined infrastructure and application delivery solutions for on premise and cloud-based workloads, including solutions for container and application delivery technology.

-The company has a subscription-based business model, providing customers with Linux OS plus a wide range of support services.

-SUSE has c. 1,400 employees and more than 60 offices across four different continents.

-The company has more than 5,000 global partners and serves over 80% of the Fortune Global 50 companies.

-During the ownership of Micro Focus, SUSE operated as a semi-independent business, executing on a clearly defined growth charter.

-SUSE has also successfully expanded its product portfolio, including solutions for cloud and storage as well as container and application delivery technology.

-EQT Partners (“”EQT””) was founded in 1994 and is based in Stockholm, Sweden with additional offices in Europe, North America and Asia.

-EQT has invested across a range of geographies and in several sectors and industries. The current portfolio includes investments in TMT, real estate, industrial technology healthcare, services and consumer goods.

-EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than €19bn and approximately 110,000 employees.

-EQT has raised €50bn across 27 funds, with its latest active fund, EQT VIII, having secured €10.75bn..

-SUSE is the first enterprise Linux and OpenStack distributor, underscored by 25+ years’ of open-source innovation.

-SUSE will benefit from favourable long-term growth tailwinds such as: (i) Unix to Linux migrations, (ii) Data centre consolidation and virtualisation, (iii) Cloud computing infrastructure, (iv) Software-defined innovations, (v) Adoption of container technology and DevOps best practises.

-EQT will support SUSE’s next period of growth and innovation as an independent company. The strategy includes:
Strengthening SUSE’s position as a leading open source player, both organically and through add-on acquisitions, leveraging EQT’s long-term experience in the software space.

-Further building SUSE’s public cloud business and expanding its next-generation product offerings.

-Arma acted as financial advisor to EQT in the acquisition of SUSE from Micro Focus.

-The transaction illustrates Arma’s leadership in advising software companies, leveraging its deep domain expertise and first class execution capabilities.

-This transaction represents a major milestone for Arma, as SUSE was Arma’s first client at the firm’s inception 15 years ago, when Arma advised its then investors led by Apax Partners on the $210 million sale to Novell, a landmark transaction which put Arma, then employing four people, on the map..