SoftwareOne Holding AG has launched a strategic review of its business after rejecting an improved takeover offer from private equity firm Bain Capital.
(Bloomberg) — SoftwareOne Holding AG has launched a strategic review of its business after rejecting an improved takeover offer from private equity firm Bain Capital.
This Swiss IT services provider said in a statement on Monday that it will explore all options to create value for its investors, including by continuing to operate as a public company, or via a sale or merger.
Shares in SoftwareOne were broadly flat in early trading in Zurich, giving the company a market value of about 3 billion Swiss francs ($3.5 billion). The stock has risen more than 40% this year amid takeover interest.
Bloomberg News reported last week that Bain increased an indicative offer for SoftwareOne to as much as 20.50 francs per share, up from an earlier proposal of 18.50 francs submitted in late May. SoftwareOne’s founding shareholders, including founder Daniel von Stockar, who together own roughly 29% of the company, backed Bain’s earlier offer. But its board rejected both bids as too low.
In its statement on Monday, SoftwareOne said it was open to discussing options that reflect the fundamental value of the company, including with Bain.
“At SoftwareOne, we are deeply committed to delivering value to all our shareholders, while acting in the best interest of all stakeholders,” Chairman Adam Warby said. “We have decided to launch a strategic review to ensure we deliver on this commitment.”
Based in Stans, Switzerland, SoftwareOne advises companies on software purchases and partners with providers such as Amazon Web Services, Adobe Inc. and International Business Machines Corp. It’s also among the largest resellers of Microsoft Corp. software licenses.
Bain has been seeking to do a deal for a European technology company and this year battled Silver Lake Management for Germany’s Software AG before dropping its pursuit. In that fight, some investors have criticized Software AG’s management for backing Silver Lake’s bid even though Bain offered a higher price.
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