EQT will buy SUSE in $2.5 bln deal

EQT is planning on acquiring SUSE, a provider of open source infrastructure software for large enterprises, from Micro Focus. The value of the transaction is $2.5 billion. Arma Partners was the financial adviser to EQT. UPDATE: Jefferies is acting as lead financial adviser to EQT on the acquisition.

PRESS RELEASE

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’s 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 cloud and storage as well as 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’s 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 employees delivering unrivalled sector expertise and transaction execution capabilities.