EQT is reportedly studying the possibility of selling SUSE in a transaction that could value the open-source software company at up to $6 billion, approximately €5.5 billion at current exchange rates. According to information leaked by Reuters, the process is still in its early stages, and there is no guarantee it will culminate in a deal.
Sources indicate that the Swedish private equity fund has hired Arma Partners to explore potential buyer interest, especially within the private equity sector. Neither EQT nor SUSE had publicly confirmed the operation at the time the information was released, and Reuters emphasizes that discussions remain at a preliminary stage.
The potential sale comes just over two years after EQT took SUSE private. In August 2023, SUSE officially announced EQT’s voluntary public offer and its intention to delist the company. At that time, the deal valued the company at around $2.96 billion, roughly €2.72 billion. If the company now reaches a valuation close to $6 billion, EQT would have nearly doubled its investment in a relatively short period.
SUSE is not just any company within European software. Founded in 1992, it was one of the pioneering companies in enterprise Linux and continues to hold a significant position in open-source infrastructure for large organizations. Reuters notes that the company provides services for cloud, mainframe, and edge computing, with clients including Walmart, Deutsche Bank, and Intel.
A potential move at a delicate moment for software
The possible transaction also occurs amid a particularly complex environment in the tech market. Reuters explains that many software companies’ valuations have been pressured by investors’ fears that new AI tools might displace traditional software. This climate has cooled the M&A market, making it harder to set convincing prices for both buyers and sellers.
However, SUSE does not fit entirely into the profile of companies most exposed to this risk. On the contrary, some investors see it as a potential indirect beneficiary of AI growth, since the deployment of models, cloud services, and new enterprise workloads require more infrastructure, Linux systems, and open tools to manage complex environments. Reuters underscores this point, suggesting that part of the market believes that demand for enterprise infrastructure software could increase as companies build and operate more AI applications.
This is probably one of the key aspects of this story. SUSE does not compete in the most visible layer of the market, where foundational models, copilots, or AI agents dominate today. Its strength lies deeper in the stack, enabling many of these workloads to run in real-world enterprise environments. At a time when the tech industry is again focusing on digital sovereignty, hybrid cloud, Kubernetes, and critical systems modernization, this position could be quite attractive to financial or industrial buyers.
From undervalued asset to coveted target
The numbers Reuters reports help explain why EQT might be testing the market now. The agency states SUSE generates about $800 million in annual revenue and over $250 million in EBITDA. This range suggests a potential valuation between approximately $4 billion and $6 billion, depending on buyer appetite and the multiples the market is willing to pay for an asset of this profile.
It’s also worth considering EQT’s history with the company. The fund acquired SUSE in 2018 from Micro Focus for an enterprise value of $2.535 billion, framing the deal as an investment in a global open-source platform for large enterprises. SUSE later went public before being taken private again via a buyback driven by EQT. This history indicates that the fund has viewed SUSE as a strategic asset with growth potential, rather than a short-term opportunistic investment.
The possible interest from private capital also makes sense considering SUSE’s business profile. Unlike other software companies more dependent on consumer trends or explosive growth, SUSE offers a more predictable outlook, supported by long-term enterprise contracts, stable relationships, and a technological foundation that remains critical in many corporate environments. While not immune to market shifts, it can be an attractive asset for investors seeking recurring revenue and reasonable operating margins.
Implications for SUSE and the open-source ecosystem
The big question is whether a new sale would fundamentally change anything within the company. Under EQT, SUSE has attempted to reinforce its independence and maintain a relatively distinct identity from the major tech groups that previously controlled it. This has been important for much of the open-source community, which tends to view ownership changes cautiously when they involve key infrastructure providers.
That said, it’s important not to anticipate overly dramatic scenarios. For now, this is just an initial exploration of the market, not an agreed-upon sale or confirmed buyer. What this information clearly shows is that SUSE is once again on the radar for major European tech deals. And in a moment when infrastructure software is gaining renewed importance due to AI, hybrid cloud, and open alternatives, this could say a lot about how the sector’s landscape is changing.
Frequently Asked Questions
Is it certain that EQT will sell SUSE?
No. Reuters indicates that the process is still in an early stage and there’s no certainty that EQT will proceed with a sale.
How much could SUSE be worth in a deal?
The valuation being discussed reaches up to $6 billion, although Reuters cites a broader range of $4 billion to $6 billion, depending on market interest.
When did EQT take SUSE private?
SUSE announced in August 2023 its voluntary public offer and intention to delist the company from the stock exchange.
Why might SUSE attract new investors now?
Because some analysts and investors believe that enterprise infrastructure software could benefit from the AI boom, as the demand for Linux platforms, cloud services, and open-source tools to deploy new workloads increases.