EQT is exploring a sale of enterprise Linux provider SUSE that could value the open source infrastructure company at up to $6 billion, highlighting growing investor interest in platforms powering AI and cloud workloads.
EQT AB is exploring a potential sale of open-source software company SUSE in a deal that could value the enterprise Linux pioneer at up to $6 billion (€5.1 billion), according to two people familiar with the matter cited by Reuters.
The Sweden-based private equity firm has hired investment bank Arma Partners to sound out private equity investors regarding interest in acquiring SUSE. The process is still at an early stage, and there is no certainty that EQT will proceed with a transaction, the sources said.
EQT, the majority owner of SUSE, took the company private in 2023, valuing it at €2.72 billion ($2.96 billion). A sale near the $6 billion mark would roughly double the company’s valuation within about two and a half years.
SUSE generates about $800 million in annual revenue and more than $250 million in EBITDA (earnings before interest, taxes, depreciation, and amortisation). Based on these metrics, the company could fetch between $4 billion and $6 billion in a potential sale.
The possible transaction comes amid a broader sell-off in software stocks, which has complicated mergers and acquisitions in the sector. While some investors worry that artificial intelligence tools could displace existing software products, others see SUSE as a potential beneficiary of AI adoption, as enterprises require robust infrastructure to deploy AI workloads.
SUSE develops open source enterprise software used to run applications across cloud servers, mainframes, and edge devices. Its customers include Walmart, Deutsche Bank, and Intel, and the company says more than 60% of Fortune 500 firms rely on its technology for some workloads.
Founded in 1992 by Roland Dyroff, Thomas Fehr, Hubert Mantel, and Burchard Steinbild, SUSE is widely recognised as the world’s first provider of an enterprise Linux distribution.
EQT declined to comment. Arma Partners and SUSE did not immediately respond to requests for comment.
