BERLIN (Reuters) – Rocket Software said on Monday it was giving up its counteroffer for Software AG and selling its stake in the company to U.S. financial investor Silver Lake instead.
Silver Lake had in April announced a 2.4 billion euro ($2.62 billion) takeover bid for Software AG, prompting a counteroffer from Rocket Software which is owned by private equity firm Bain Capital.
Software AG’s management and supervisory boards supported Silver Lake despite Bain’s higher offer of 36 euros per share, drawing criticism from minority shareholders at the company’s annual general meeting last month.
“Unfortunately, we were not successful in our efforts,” Rocket Software chairman Andy Youniss said in a statement.
Rocket would sell and transfer its entire stake of 10.02% in Software AG for 32 euros per share, the company said.
Silver Lake said it had as such now secured 41% of shares in Software AG, noting its cash offer to other Software AG shareholders remained open until June 28.
Its convertible bonds in Sofware AG could also convert into 10% of total current share capital, Silver Lake said.
“Silver Lake’s investment in Software AG reflects our commitment to working with founders and management teams to help them build and grow great companies,” said Christian Lucas, EMEA co-head at Silver Lake.
($1 = 0.9159 euro)
(Reporting by Alexander Huebner and Sarah Marsh; editing by Jonathan Oatis)
