Cyber-Recovery Pays Off: Warburg Pincus to Acquire German Software Firm PSI in Deal Valued Above £700 Million

Private equity firm Warburg Pincus has agreed to acquire the German software company PSI Software AG in a deal valued at more than €700 million ($813 million), according to statements from both companies on Monday. Reports of the pending acquisition had circulated over the preceding weekend.

PSI Software specializes in developing control and monitoring systems used in energy transmission networks and industrial production facilities. The company has been rebuilding its operations after a serious cyberattack disrupted business activity last year. In an update on Friday, PSI confirmed that discussions about a possible sale were underway.

Under the terms of the deal, Warburg Pincus will offer €45 per share, representing roughly a 50 percent premium compared with PSI’s closing price on Thursday. Following early news of the potential buyout, PSI’s stock rose nearly 11 percent on Friday to end the day at €33.20.

PSI’s board has expressed support for the transaction and plans to recommend that shareholders accept the offer. The deal, which is being advised by Goldman Sachs, also envisions removing PSI from public trading once the acquisition is finalized. Warburg Pincus stated that it intends to keep PSI’s existing leadership team and maintain the company’s Berlin headquarters.

The investment firm has already arranged commitments covering about 28.5 percent of PSI’s shares from several major investors. One of the anchor shareholders—whose identity was not publicly disclosed—will reinvest part of its proceeds alongside Warburg Pincus. Among PSI’s largest stakeholders, Norman Rentrop holds approximately 23 percent, while German utility E.ON owns close to 18 percent. E.ON has said it will continue its partnership with PSI as a strategic investor.

The acquisition follows a year of operational challenges for PSI. The company reported a €15.2 million ($17.6 million) loss before interest and taxes, largely due to the disruption caused by the cyberattack that halted some of its activities for several weeks.