EQT is exploring a potential sale of SUSE that could value the open-source software developer at up to $6bn, according to sources cited by Reuters.

The private equity firm has engaged Arma Partners to gauge interest among private equity buyers for a potential transaction, according to people familiar with the matter. Discussions remain at an early stage and EQT may decide not to pursue a sale. 

EQT took SUSE private in 2023 in a deal that valued the company at about €2.72bn, or roughly $2.96bn. A sale at the targeted valuation would represent a significant uplift in value in less than three years.

Headquartered in Luxembourg, SUSE develops enterprise infrastructure software built on open-source Linux technology. Its products help companies run applications across cloud platforms, mainframe computers, and edge computing environments.

The company generates about $800m in annual revenue and more than $250m in earnings before interest, taxes, depreciation, and amortisation.

More than 60% of Fortune 500 companies use SUSE software to power parts of their technology infrastructure. Customers include Walmart, Deutsche Bank, and Intel.

The potential transaction comes as dealmaking in the software sector remains volatile. Investors have raised concerns that artificial intelligence could disrupt existing software providers, though some market participants expect demand for enterprise infrastructure platforms to increase as companies deploy AI systems.

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