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Bain to take majority stake in Rocket Software
Posted on Tuesday, 09 October 2018 09:06
Rocket Software, the global technology company helping over 10.00 million businesses professionals to run their applications and get the most out of their data, announced Bain Capital has agreed to acquire a majority stake, valuing it at about USD 2.00 billion.
The group is expected to continue operations under its current management team with Andy Youniss to retain his position as chief executive following closing.
Private equity firm Bain already has a strong portfolio in the technology market with companies such as Applied Systems, BMC Software, SunGard Data Systems and Symantec.
Just yesterday, the buyout group agreed to sell a 17.6 per cent stake in MYOB for roughly AUD 327.45 million (USD 231.30 million) to KKR & Co, which then made an unsolicited approach to acquire all outstanding shares in the Australian accounting software provider in a deal that would value the firm at about AUD 2.08 billion.
Established in 1990, Rocket Software helps information technology companies and business professionals to run critical infrastructure applications, processes and data, assisting 43 of the Fortune 50.
The group’s software makes it easier to unlock logic and data inside host-based systems to boost speed digital transformation projects for its clients to compete more effectively.
Youniss said: “This new relationship will allow us to devote significant resources to our new global R&D [research and development] organisation.”
He added that in addition the company will be able to develop and deliver “even more solutions that help our customers both optimise and modernise their applications, data, and security infrastructure on IBM Z, IBM i, and MultiValue application platforms”.
The deal is subject to regulatory approvals and is expected to complete in the fourth quarter of 2018.
Last month, Rocket Software expanded its operations in Asia and named Paul Lin as senior channel manager for the Asia Pacific region.
As part of its strategic plan to grow its business in the market, the company has announced major deals with financial institutions such as CIMB Bank, Westpac Banking Group and PT Bank Central Asia.
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