SoftwareOne says discussions with potential buyers ongoing

SoftwareOne on Wednesday said discussions with potential buyers were ongoing as the Swiss software services company reported a slowdown in revenue growth and adjusted its full-year guidance downwards.

Revenue increased by 7.0% in first half of the year, said the company, which has attracted takeover interest from Apax Partners, Bain Capital and CVC.

The increase, measured in constant currencies, was a decline from the 7.4% rate in the first quarter.

As a result, the company reduced its full guidance for full year revenues to increase by 7% to 9%, down from its previous outlook for an 8-10% increase.

Other parts of the outlook, such as a dividend pay-out ratio and profit margin, were unchanged.

SoftwareOne, which Reuters reported last month has attracted renewed takeover interest, said it was still examining “several” approaches to take the company private.

“Indications of interest have been received,” it said on Wednesday. “Discussions, although challenging given the general business environment, are progressing. The Board will provide further updates if and when required.”

The company, which helps customers buy and manage software from other providers such as Microsoft, SAP and Adobe, flagged the approaches in May and has set up a committee to examine the matter.