Private equity firm Bain Capital is considering a potential sale of Rocket Software, which could value the US-based automation software provider at up to $10bn, including debt, according to a report by Reuters citing unnamed sources familiar with the matter.
The move comes amid a surge in artificial intelligence adoption, prompting major corporations to ramp up technology investments to modernise legacy business software and streamline routine operations. According to technology research firm Gartner, global IT spending is projected to rise nearly 10% this year, reaching $5.61tn.
Bain has engaged financial advisors Moelis & Co and RBC Capital to guide Rocket Software through the sale process, which is expected to commence in the coming weeks, the sources said. They requested anonymity as the discussions remain confidential.
Two sources indicated that the deal could value Rocket between $8bn and $10bn. Given Rocket’s scale, private equity firms are anticipated to show interest, with some potentially forming partnerships to pursue the acquisition.
Rocket is seeking a valuation exceeding 10 times its annual earnings before interest, taxes, depreciation, and amortisation (EBITDA), which stands at approximately $800m, the sources added.
Discussions are still in the early stages though, and a deal is not guaranteed.
Bain Capital, Moelis, and Rocket Software declined to comment, while RBC Capital did not immediately respond to requests for comment.
Bain Capital initially invested in Rocket Software in 2018 at a $2bn valuation. Under the private equity firm’s ownership, the company has expanded through multiple acquisitions, including a $2.3bn purchase of OpenText’s software modernisation business last year.
