Silver Lake adds to Software AG stake amid acquisition bid

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Private equity firm Silver Lake disclosed on Friday it had raised its stake in Software AG, days after announcing a 2.2 billion-euro ($2.42 billion) tender offer for the German business software developer.Silver Lake said in a regulatory disclosure that it had acquired a 5 per cent stake in Software AG at

Private equity firm Silver Lake disclosed on Friday it had raised its stake in Software AG, days after announcing a 2.2 billion-euro tender offer for the German business software developer.

Silver Lake said in a regulatory disclosure that it had acquired a 5 per cent stake in Software AG at or below its acquisition bid of 30 euros per share from existing shareholders. This adds to its agreement to buy a 25.1 per cent stake in Software AG from a charitable foundation that is the principal shareholder in the company. The consummation of that agreement is not subject to Silver Lake's offer being accepted by a majority of Software AG's shareholders, Silver Lake said.

Silver Lake's positioning could make it more difficult for a rival bidder to succeed, given that its deal with the charitable foundation does not allow it to entertain another offer. Bloomberg News reported on Friday, citing sources, that Bain Capital, another private equity firm, has amassed an unspecified stake in Software AG and is offering to buy it and combine it with Rocket Software, a company it already owns.

Silver Lake also disclosed on Friday that it had secured debt financing for its offer for Software AG.

 

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