Warburg Pincus is on the cusp of acquiring German industrial maintenance firm PSI Software AG in a deal exceeding 700 million euros, according to sources familiar with the matter. The potential transaction woudl mark a notable move for the U.S. private equity firm in the European industrial software sector.
The acquisition of PSI, which provides software for energy, logistics, and manufacturing, comes as demand for digitalization and automation solutions intensifies across industries. A deal would give Warburg Pincus a foothold in a key European market and allow PSI to accelerate its growth plans. The transaction is expected to face regulatory scrutiny given PSI’s sensitive client base and the strategic importance of its software.Discussions are in the advanced stages,with a deal perhaps announced in the coming weeks,the sources said. While the exact terms are still being finalized, the valuation is believed to be above 700 million euros ($757 million), reflecting PSI’s strong market position and growth prospects.PSI, founded in 1982 and headquartered in Dreieich, Germany, serves a diverse range of clients including energy suppliers, railway operators, and manufacturers. The company reported revenue of 228.7 million euros in 2023 and employs over 1,800 people.
warburg Pincus has been actively investing in the software sector,with a particular focus on industrial technology. The firm manages over $85 billion in assets and has a long track record of successful investments in companies like Advanced Metering Infrastructure and Qualtrics.
