EQT Eyes $6 Billion Sale of SUSE

Private equity firm EQT AB is reportedly exploring a sale of SUSE that could value the open-source Linux pioneer at up to $6 billion, roughly doubling the valuation since EQT took the company private in 2023. Reuters reports: EQT "has hired investment bank Arma Partners to sound out a group of private equity investors for a possible sale of the company, said the sources, who requested anonymity to discuss confidential matters. The deliberations are at "an early stage and there is no certainty that EQT will proceed with "a transaction, the sources said. [...] The potential deal comes amid a broader selloff in software stocks, which has disrupted mergers and acquisitions activity. Investors are "concerned that new artificial intelligence tools could displace many existing software products, weighing on technology "valuations and making deals harder to price. Some investors, however, see Luxembourg-headquartered SUSE as a potential beneficiary of AI adoption, arguing that demand for enterprise-grade infrastructure software is likely to grow as companies build and deploy more AI applications. The company generates about $800 million in revenue and more than $250 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) and could fetch between $4 billion and $6 billion in a sale, the sources said.

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