EQT's Suse sets out IPO plans

The offering will include newly issued shares, targeting net proceeds of around $500m. The company said in a statement that it aims to repay existing debts, reducing its net leverage to 3.25x net debt. Existing shareholders will also issue shares as part of the IPO, with additional new shares to come, dependent on the settlement of a employee incentive scheme.

Unquote sister publication Mergermarket reported in January 2021 that Suse could cite Permira-backed TeamViewer and ServiceNow as comparators in a potential IPO, which could see the company valued at €5bn.

EQT acquired Suse from UK-listed Micro-Focus International in a $2.535bn deal. The GP deployed equity via EQT VIII, which held a final close in February 2017 on €10.75bn. The GP owns its shares in Suse via its Marcel LUX III holding company.

Suse had previously received PE backing from sponsors including Apax Partners and LGT Capital Partners; the company was sold to trade for $210m in 2003, according to Unquote Data.

Founded in 1992, Suse is headquartered in Fürth. The company produces open-source enterprise software for use with Linux, for functions including server and cloud storage, and IT infrastructure management. The company said in a statement that around 98% of its revenues in 2020 stemmed from subscriptions that provide additional enterprise capabilities in addition to its freely available code.

At the time of EQT's investment, Suse reported adjusted EBITDA of $98.9m for the year ending in April 2017 and $54.4m for the six months to October 2017. In the year to 31 October 2020, the company posted adjusted revenues of $503m, an increase of 17.6% compared with the same period in 2019.

The company said in the same statement that it has invested in marketing and acquisitive growth during the investment period.

Bank of America Securities and Morgan Stanley are acting as joint global coordinators and joint bookrunners. Deutsche Bank, Goldman Sachs, Jefferies and JP Morgan have been mandated as joint bookrunners.

Other IPOs in Germany planned for Q2 2021 include Hg's MeinAuto, as well as Cinven-backed Synlab and Paragon Partners' Apontis Pharma.

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