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Silver Lake merges Cegid and Silae in 10 billion euro bet on AI-era software

French firms Cegid, which sells business management software, and Silae, a payroll and HR platform, are set to combine.

Silver Lake merges Cegid and Silae in 10 billion euro bet on AI-era software
Private equity fund Silver Lake plans to merge two of its software firms, as the sector grapples with AI disruption.

French firms Cegid, which sells business management software, and Silae, a payroll and HR platform, would combine in a deal that would bring together payroll, accounting, e-invoicing, digital finance and payments data, and create a 1,400-person developer team to invest in AI.

The deal has an enterprise value of more than 10 billion euros ($11.6 billion), per a statement announcing it.

AI pressure reshapes software sector

Software stocks have tumbled amid fears AI would drive a "SaaSpocalypse. " Some have since recovered, with May marking the sector's best month since 2001, though .

In a statement, the companies said that joining forces would enable them to scale investment in research and development amid the emergence of AI.

Silver Lake is the majority shareholder of both Cegid and Silae and will remain the majority shareholder of the combined group. Subject to regulatory approval, the transaction is expected to complete in the first half of 2027, the statement said.

The companies are expected to have an annual revenue of 1.6 billion euros ($1.9 billion),

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Reported by Kai Nicol-Schwarz · Syndicated via official news feed

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