Key Takeaways
- • Warburg Pincus is acquiring German software maker PSI Software for over €700 million ($813 million), valuing the company at €45 per share—a premium of more than one-third above Friday's closing price.
- • PSI, which specializes in software for energy networks, was in advanced discussions with three bidders (Warburg Pincus, Thoma Bravo, and HgCapital) before Warburg Pincus emerged as the selected buyer.
- • E.ON, PSI's second-largest shareholder with approximately 18% ownership and a major customer, intends to retain its stake as a strategic investor rather than exit the transaction.
- • Goldman Sachs is running the sales process; the deal had not yet been formalized as of October 12, with announcement expected as soon as October 14 (Monday), subject to finalization of terms.
- • The transaction is expected to close in the first half of 2026 and remains subject to regulatory approvals and acceptance thresholds.
Summary
Private equity firm Warburg Pincus has neared completion of an acquisition of PSI Software, a Berlin-based German software company specializing in energy network management solutions, in an all-cash transaction valued at over €700 million ($813 million). The deal structure values PSI at €45 per share, representing a premium of more than 33% above the company's closing price on Friday, October 11, 2025.
PSI had publicly confirmed advanced discussions with three potential acquirers—Warburg Pincus, Thoma Bravo, and HgCapital—in the week prior to this announcement. Goldman Sachs is managing the sales process on behalf of PSI. As of the October 12 reporting date, neither PSI nor Goldman Sachs provided comment, and Warburg Pincus was unavailable for immediate response. One source indicated that a formal announcement could occur as early as Monday, October 14, though final formalization and documentation remained outstanding at the time of reporting.
A significant strategic element of the transaction involves E.ON, the German utility giant that serves as both PSI's second-largest investor (holding approximately 18% of shares) and a major customer. Sources confirmed that E.ON intends to maintain its shareholding position rather than participate in the exit, positioning itself as a strategic long-term investor alongside Warburg Pincus's majority control. This retained stake aligns E.ON's interests with the company's continued operational success in the energy software sector.
The acquisition follows a structured auction process and represents Warburg Pincus's entry into the specialized German enterprise software market. The transaction is expected to close during the first half of 2026, contingent upon regulatory approvals and satisfaction of standard closing conditions, including a minimum acceptance threshold from shareholders.
PSI had publicly confirmed advanced discussions with three potential acquirers—Warburg Pincus, Thoma Bravo, and HgCapital—in the week prior to this announcement. Goldman Sachs is managing the sales process on behalf of PSI. As of the October 12 reporting date, neither PSI nor Goldman Sachs provided comment, and Warburg Pincus was unavailable for immediate response. One source indicated that a formal announcement could occur as early as Monday, October 14, though final formalization and documentation remained outstanding at the time of reporting.
A significant strategic element of the transaction involves E.ON, the German utility giant that serves as both PSI's second-largest investor (holding approximately 18% of shares) and a major customer. Sources confirmed that E.ON intends to maintain its shareholding position rather than participate in the exit, positioning itself as a strategic long-term investor alongside Warburg Pincus's majority control. This retained stake aligns E.ON's interests with the company's continued operational success in the energy software sector.
The acquisition follows a structured auction process and represents Warburg Pincus's entry into the specialized German enterprise software market. The transaction is expected to close during the first half of 2026, contingent upon regulatory approvals and satisfaction of standard closing conditions, including a minimum acceptance threshold from shareholders.
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