Warburg Pincus to Acquire PSI Software in Deal Valued Over €700 Million
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A technology investment firm, Warburg Pincus, has launched a bid to acquire Berlin-based software company PSI Software for a sum exceeding €700 million, confirmed by both companies on Monday. The proposed purchase price of €45 per share represents an impressive premium – over 80 percent – compared to PSI’s share price on Thursday, prior to reports of the potential acquisition.
The offer, which has received the backing of PSI Software’s board, is being recommended to shareholders. Following the completion of the deal, PSI Software is expected to be delisted from the stock exchange. Warburg Pincus has already secured approximately 28.5 percent of the shares from existing anchor shareholders and aims to acquire at least 50 percent plus one share.
E.ON Remains a Strategic Investor
Notably, energy company E.ON intends to maintain its roughly 18 percent stake in PSI Software and will continue to operate as a strategic investor. This continued support signals confidence in PSI’s future role within the energy sector.
PSI Software’s Business and Recent Challenges
PSI Software specializes in software solutions for the energy industry, as well as applications in logistics and production. The company employs around 2,350 people and generated sales of €260.8 million last year. However, the company recently faced significant headwinds. A debilitating cyber attack brought operations to a standstill for weeks, resulting in a pre-tax loss of €15.2 million for the year.
Market Reaction and Future Outlook
PSI shares closed at €33.20 on Friday, reflecting investor anticipation of the deal. The acquisition by Warburg Pincus could provide PSI Software with the resources and stability needed to overcome the challenges posed by the recent cyber attack and capitalize on its expertise in critical infrastructure management. The move underscores the continued interest in software companies serving essential industries.
