SoftwareOne in ongoing discussions with potential buyers after Bain Capital deal collapse
Nickie Louise
Posted On August 21, 2024
Following the collapse of the acquisition deal with Bain Capital in March, SoftwareOne announced on Wednesday that it’s in ongoing discussions with potential buyers as the Swiss IT services company reported a slowdown in revenue growth and revised its full-year guidance downward.
The company posted a 7.0% revenue increase for the first half of the year. This growth rate, measured in constant currencies, was slightly down from the 7.4% growth in the first quarter.
Consequently, SoftwareOne adjusted its full-year revenue outlook to a 7% to 9% increase, down from the previously anticipated 8% to 10%. Other aspects of the outlook, such as the dividend payout ratio and profit margin, remained unchanged.
SoftwareOne, which attracted renewed takeover interest last month, confirmed that it is still evaluating “several” proposals to take the company private, Reuters reported.
“Indications of interest have been received,” the company stated on Wednesday. “Discussions, though challenging given the broader business environment, are progressing. The Board will provide further updates if necessary.”
SoftwareOne, which assists customers in purchasing and managing software from providers like Microsoft, SAP, and Adobe, first flagged these approaches in May and has since formed a committee to review the situation.
Just over a year ago, Bain Capital raised its offer to acquire SoftwareOne to $3.7 billion, translating to approximately 20 francs per share. Despite this, the founding shareholders unexpectedly terminated their agreement with Bain Capital. In addition to Bain, SoftwareOne has also received bids from Apax Partners and CVC.
With a foundation dating back to 1985, the Sans, Switzerland-Founded headquartered SoftwareOne is a renowned global provider of comprehensive software and cloud technology solutions. The company specializes in assisting companies with the management of software purchases from renowned vendors such as Microsoft, Adobe, and IBM. The company went public on the Swiss exchange in 2019.
