By Arno Schuetze
FRANKFURT (Reuters) - Open-source enterprise software company SUSE is targeting a pre-summer initial public offering in a deal that may value the private equity-backed company with German roots at 7-8 billion euros ($8.3-9.5 billion), people close to the matter said.
The Linux specialist's owner, buyout group EQT (NYSE:EQT), has stepped up preparations for the deal and chosen a syndicate of banks to organise the deal, which is expected to kick off in May, they said.
Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) will execute the deal as so-called global coordinators with the help of Goldman Sachs (NYSE:GS), Deutsche Bank (DE:DBKGn) and Jefferies (NYSE:JEF) as bookrunners, they added.
EQT declined to comment, while some of the banks also declined to comment while others were not immediately available for comment.
A SUSE IPO would add to a busy season of new listings in Europe, which has already seen a $12 billion flotation from Polish firm InPost, $10 billion listing by German used-car trading platform AUTO1 and British boot brand Dr. Martens' $5 billion IPO.
German mobile masts firm Vantage Towers, worth around $18 billion, and British food delivery firm Deliveroo have also announced listing plans.
SUSE, founded in 1992, was acquired two years ago by EQT from Micro Focus International (NYSE:MFGP) for $2.5 billion. The private equity firm has strengthened SUSE with add-on acquisitions such as that of Rancher Labs for about $600 million in July.
SUSE's revenue exceeded $450 million in the fiscal year to Oct. 31, with both the top line and profit growing in double digits. The annual contract value of bookings worth more than $1 million grew by 21% in its fiscal fourth quarter, while cloud bookings jumped by 87%.
($1 = 0.8401 euros)