November 26, 2020

SUSE is rumored to be in IPO negotiations and will raise $6 billion

2 min read

The well-known operating system developer SUSE is currently in IPO negotiations. If it goes well, SUSE will land on the stock market and raise $6 billion.

This German open-source software company was founded in 1992. The company is the developer of SUSE Linux Enterprise and the main sponsor of openSUSE.

Although the owner of SUSE has undergone many changes in the past few years, for SUSE, no changes in the controlling party have affected the rapid growth of its main business.

The company now belongs to the Swedish private equity firm EQT Group (EQT). Last year, EQT spent US$2.5 billion to acquire SUSE from Micro Focus.

Although EQT Group acquired SUSE not long ago, it seems that the group thinks it is a good time to go public, so SUSE is secretly conducting IPO negotiations.

SUSE partners Microsoft

SUSE’s 2020Q3 financial report showed that its revenue increased by 14%. Despite the negative impact of the epidemic on the global economy, SUSE’s revenue is still growing.

The company stated that its annual contract value reservations have increased by up to 81%, which is also the 14th consecutive quarter of year-on-year growth in SUSE’s annual contract value.

In addition to maintaining rapid business growth, SUSE is also actively acquiring and expanding its business. For example, it acquired Rancher Labs, a US software developer, in July 2020.

Bloomberg said that the current IPO negotiations are at a very preliminary stage, so there is no news about the detailed plan or the time and pricing of SUSE.

An official SUSE spokesperson stated that the company is constantly exploring ways of growth, but according to company policy, it is unable to comment on market rumors or investment information.