Bain Capital to buy majority stake in Rocket Software

A reporter raises his hand to ask a question during a news conference by Bain Capital LP Managing Director Yuji Sugimoto (not in the picture) in Tokyo, Japan October 5, 2017. REUTERS/Kim Kyung-Hoon

IT services company Rocket Software said on Monday private equity firm Bain Capital had agreed to take a majority stake in the privately held firm in a deal valued at about $2 billion.

The deal is the latest example of the private equity sector’s appetite for software companies with predictable maintenance and subscription revenue and a loyal client base.

Waltham, Massachusetts-based Rocket Software will continue to operate under its current management team, led by President and Chief Executive Officer Andy Youniss, the company said.

Rocket Software, a provider of technology services to companies using products from International Business Machines Corp, was founded in 1990 and is owned by private equity firm Court Square Capital Partners.

The deal is expected to close during the fourth quarter of 2018.

Morgan Stanley & Co LLC and Credit Suisse served as financial advisers and Dechert LLP served as legal adviser to Rocket Software.

Kirkland & Ellis is serving as legal counsel and PwC is acting as accounting adviser to Bain Capital.

Reuters.com