$2 Billion Investment (!) Into Rocket Software by Bain Capital Private Equity

Rocket Software, Inc., in developing and delivering enterprise modernization and optimization solutions, announced the signing of a definitive agreement for Bain Capital Private Equity to acquire a majority stake in the company.

The enterprise value of the transaction is approximately $2 billion. Rocket Software will continue to operate under its current management team, led by president and CEO Andy Youniss.

“We are excited to partner with Bain Capital as we get ready to launch our fourth decade of growth,” said Youniss. “Rocket solutions help organizations get the most from their data and achieve ‘digital literacy’ through modernization, which is the fuel they need to compete more effectively in the digital age. Our core values begin and end with putting our customers and partners first. This new relationship will allow us to devote significant resources to our new global R&D organization, while developing and delivering even more solutions that help our customers both optimize and modernize their applications, data, and security infrastructure on IBM Z, IBM i, and MultiValue application platforms.”

Founded in 1990, more than 10 million IT and business professionals rely on Rocket Software products to run their infrastructure applications, business processes and data, including 43 of the Fortune 50 companies. Its solutions make it easier to unlock the business logic and data inside host-based systems to help speed digital transformation projects and help companies compete more effectively. IT departments streamline their daily operations using the automation and optimization capabilities to get more out of existing resources and free staff to focus on efforts that drive new revenue.

The company is currently owned by Court Square Capital Partners.

“Rocket Software is resoundingly viewed as a trusted resource by customers and partners who depend upon its reliable technology and mission-critical product portfolio. The company has been enormously successful transforming and continually improving its innovative solutions as well as integrating acquisitions,” said David Humphrey, MD, Bain Capital Private Equity.

“We look forward to partnering with Andy and his team to further accelerate growth by expanding the platform and remaining focused on serving the needs of customers and partners around the world,” added Ian Loring, MD, Bain Capital Private Equity.

Bain Capital Private Equity has experience in the technology sector, having made investments in a range of software companies including Applied Systems, BMC Software, CentralSquare Technologies, MYOB, Skillsoft, SunGard Data Systems, Symantec, Viewpoint Construction Software, Vertafore, and Waystar.

The transaction is subject to customary closing conditions, including requisite regulatory approvals, and is expected to close during 4Q18.

Morgan Stanley & Co. LLC and Credit Suisse served as financial advisors and Dechert LLP served as legal advisor to Rocket Software. Kirkland & Ellis LLP is serving as legal counsel, and PricewaterhouseCoopers is acting as accounting advisor to Bain Capital Private Equity.