Bain Capital Private Equity has agreed to acquire a majority stake in Waltham, Massachusetts-based Rocket Software, a provider of enterprise modernization and optimization solutions. The value of the deal is about $2 billion. The deal is expected to close during the fourth quarter of 2018. Rocket Software is currently owned by Court Square Capital Partners.
WALTHAM, Mass. – October 8, 2018 – Rocket Software, a global technology provider and leader in developing and delivering enterprise modernization and optimization solutions, today announced the signing of a definitive agreement for Bain Capital Private Equity to acquire a majority stake in the company. The enterprise value of the transaction is approximately $2 billion. Rocket Software will continue to operate under its current management team, led by President and Chief Executive Officer Andy Youniss.
“We are excited to partner with Bain Capital as we get ready to launch our fourth decade of growth,” said Youniss. “Rocket solutions help organizations get the most from their data and achieve ‘digital literacy’ through modernization, which is the fuel they need to compete more effectively in the digital age. Our core values begin and end with putting our customers and partners first. This new relationship will allow us to devote significant resources to our new global R&D organization, while developing and delivering even more solutions that help our customers both optimize and modernize their applications, data, and security infrastructure on IBM Z, IBM i, and MultiValue application platforms.”
Founded in 1990, more than 10 million IT and business professionals rely on Rocket Software products to run their critical infrastructure applications, business processes and data, including 43 of the Fortune 50 companies. Rocket Software’s solutions make it easier to unlock the business logic and data inside hostbased systems to help speed digital transformation projects and help companies compete more effectively. IT departments streamline their daily operations using the automation and optimization capabilities offered by Rocket Software to get more out of existing resources and free staff to focus on efforts that drive new revenue. The company is currently owned by Court Square Capital Partners.
“Rocket Software is resoundingly viewed as a trusted resource by customers and partners who depend upon its reliable technology and mission-critical product portfolio. The company has been enormously successful transforming and continually improving its innovative solutions as well as integrating acquisitions,” said David Humphrey, a Managing Director at Bain Capital Private Equity. “We look forward to partnering with Andy and his team to further accelerate growth by expanding the platform and remaining focused on serving the needs of customers and partners around the world,” added Ian Loring, a Managing Director at Bain Capital Private Equity.
Bain Capital Private Equity has deep experience in the technology sector, having made investments in a wide range of software companies including Applied Systems, BMC Software, CentralSquare Technologies, MYOB, Skillsoft, SunGard Data Systems, Symantec, Viewpoint Construction Software, Vertafore, and Waystar.
The transaction is subject to customary closing conditions, including requisite regulatory approvals, and is expected to close during the fourth quarter of 2018. Morgan Stanley & Co. LLC and Credit Suisse served as financial advisors and Dechert LLP served as legal advisor to Rocket Software. Kirkland & Ellis is serving as legal counsel, and PwC is acting as accounting advisor to Bain Capital Private Equity.
About Rocket Software
Rocket Software (www.rocketsoftware.com) is a technology company that helps organizations in the IBM ecosystem build solutions that meet today’s needs while extending the value of their technology investments for the future. Thousands of companies depend on Rocket to solve their most challenging business problems by helping them run their existing infrastructure and data, as well as extend those assets to take advantage of cloud, mobile, analytics, and other future innovations. Founded in 1990, Rocket is based in Waltham, Massachusetts with locations in Europe, Asia, and Australia.
About Bain Capital Private Equity
Bain Capital Private Equity (www.baincapitalprivateequity.com) has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since its founding in 1984. Bain Capital Private Equity’s global team of approximately 220 investment professionals creates value for its portfolio companies through its global platform and depth of expertise in key vertical industries including healthcare, consumer/retail, financial and business services, industrials, and technology, media and telecommunications. Bain Capital has 19 offices on four continents. The firm has made primary or add-on investments in more than 760 companies since its inception. In addition to private equity, Bain Capital invests across asset classes including credit, public equity and venture capital, managing approximately $105 billion in total and leveraging the firm’s shared platform to capture opportunities in strategic areas of focus.