Private equity fund Silver Lake plans to merge two of its software companies as the industry grapples with AI disruption.
French company Cegid, which sells business management software, and Silae, which provides a payroll and HR platform, will sign a deal to create a team of 1,400 developers who will integrate payroll, accounting, electronic invoicing, digital financial and payment data, and invest in AI.
The transaction has an enterprise value of more than 10 billion euros ($11.6 billion), according to a statement.
AI pressures will reshape the software sector
Software stocks fell amid concerns that AI could cause a “SaaSpocalypse.” There has since been some recovery, with May being the sector’s best month since 2001, but concerns remain.
The companies said in a statement that the partnership will allow them to increase investment in research and development amid the rise of AI.
Silver Lake is a major shareholder in both Cegid and Silae and will remain a major shareholder in the combined group. The transaction is expected to close in the first half of 2027, subject to regulatory approvals, the statement said.
The companies are expected to have annual sales of 1.6 billion euros ($1.9 billion), the FT reported.
Christian Lucas, managing partner of California-based Silver Lake, will serve as chairman of the new combined business.
“Together, Cegid and Silae can offer a unique end-to-end suite of software and AI-powered products that serve small and medium-sized enterprises and their professional advisors, the dynamic heart and soul of the European economy,” Lucas said in a statement.
