Nuremberg,Germany / Bengalore,India: UK’s Micro Focus has agreed to sell its open-software arm SUSE to private equity group EQT for $2.5 billion, according to reports. As a part of the deal, SUSE will continue to function and operate as an independent business post the deal. The completion of EQT’s acquisition of SUSE from Micro Focus is subject to Micro Focus shareholder and customary regulatory approvals and is expected to occur in early 2019.
In a partnership with EQT, SUSE expects to be equipped to further exploit the excellent market opportunity both in the Linux operating system area as well as in emerging product groups in the open source space. Under the continued leadership of SUSE CEO Nils Brauckmann, SUSE will move to the next stage of its corporate evolution and operate globally as an independent company post-completion of the transaction. To ensure continuity, the SUSE business expects staffing, customer relationships, partnerships, product and service offering, commitment to open source leadership and support for the key open source communities to remain unchanged.
“Today is an exciting day in SUSE’s history. By partnering with EQT, we will become a fully independent business,” said Nils Brauckmann, SUSE CEO. “The next chapter in SUSE’s development will continue, and even accelerate the momentum generated over recent years. Together with EQT we will benefit both from further investment opportunities and having the continuity of a leadership team focused on securing long-term profitable growth combined with a sharp focus on customer and partner success. The current leadership team has managed SUSE through a period of significant growth, and now, with continued investment in technology innovation and go to market capability, will further develop SUSE’s momentum going forward.”
Johannes Reichel, Partner – EQT Partners and Investment Advisor to EQT VIII, added, “We are excited to partner with SUSE’s management in this attractive growth investment opportunity. We were impressed by the business’ strong performance over recent years as well as its strong culture and heritage as a pioneer in the open source space. These characteristics correspond well to EQT’s DNA of supporting and building strong and resilient companies, and driving growth. We look forward to entering the next period of growth and innovation together with SUSE.”
SUSE expects to be well positioned to further realize its potential with backing from EQT to fuel its momentum and build on the progress made under Micro Focus.
SUSE believes the acquisition is well timed as the market driven need for digital transformation, built on open source software-defined infrastructure (SDI) and application delivery technologies, is increasing. Organizations are invariably increasing their focus on open source technologies and solutions to transform their businesses.