Private equity firm EQT AB is exploring options for SUSE, the open-source software company, in a process that could value the business at as much as $6 billion. The owner has engaged Arma Partners to solicit interest from private equity investors, according to two people familiar with the discussions.
Those people said the outreach is at an early stage and that there is no assurance the deliberations will culminate in a sale. The situation remains fluid, with EQT and Arma Partners conducting preliminary outreach to potential bidders.
EQT, which is headquartered in Sweden, acquired SUSE in 2023 and took it private at a valuation of 2.72 billion euros ($2.96 billion). A transaction that settled around $6 billion would represent roughly a doubling of that valuation in roughly two and a half years.
The potential marketing of SUSE unfolds against broader market conditions that have weighed on software equities. The sector has experienced a wider selloff recently amid heightened concerns about the potential for disruption stemming from developments in artificial intelligence. That backdrop forms the market context in which any sale process would proceed.
Market participants and potential bidders are being approached as part of an initial information-gathering phase. At this stage, parties involved in the outreach are seeking indications of interest; however, the early timing of the outreach means there is substantial uncertainty about whether a formal auction or negotiated sale will occur.
The possible valuation range cited - up to $6 billion - and the fact that EQT paid 2.72 billion euros for SUSE in 2023 are central numeric anchors for any assessment of the potential transaction's scale. Beyond those figures, details on potential bidders, timetable, deal structure or financing arrangements have not been disclosed by the people familiar with the matter.
Given the preliminary nature of the outreach, outcomes remain uncertain and dependent on further interest, valuation alignment and market conditions. The company and advisers involved have not confirmed that a sale process will advance to a definitive transaction.
Summary
EQT has initiated early-stage outreach through Arma Partners to private equity investors about a potential sale of SUSE that could be valued at up to $6 billion. The firm paid 2.72 billion euros ($2.96 billion) for SUSE in 2023, and any sale at around $6 billion would represent a roughly twofold increase in valuation over about two and a half years. The discussions are at an early stage and may not result in a deal, and the process is taking place while software stocks face broad selling pressure amid concerns tied to artificial intelligence.