EQT Private Capital Asia acquires WSO2 to boost global software portfolio

In a significant move within the enterprise software market, EQT Private Capital Asia, part of BPEA Fund VIII, has announced its agreement to acquire WSO2 from its existing shareholders. WSO2 is renowned for its leading-edge application development and identity and access management software, predominantly serving blue-chip customers in the Americas and EMEA regions.

Founded in Asia, WSO2 has carved out a formidable presence globally, supporting digital transformation for large-scale enterprises, universities, and government bodies. Its comprehensive offerings in API Management, Integration, and Identity and Access Management are well-poised to meet the increasing demands driven by multi-cloud environments, higher API usage, the proliferation of Generative AI, and escalating cybersecurity threats.

Hari Gopalakrishnan, Partner at EQT Private Capital Asia, highlighted the strategic alignment, stating, “Software is a key focus sector for EQT, and WSO2 is a strong company that has scaled globally with an enterprise customer base spread across the US and Europe. We are excited to partner with WSO2 and believe that the Company is well-positioned to capitalize on long-term trends such as digital transformation and rising GenAI adoption.”

Dr. Sanjiva Weerawarana, CEO and Founder of WSO2, expressed enthusiasm about the acquisition: “We are thrilled to partner with EQT as we embark on the next phase of WSO2’s journey. With EQT’s support and expertise, we are well-positioned to accelerate our innovation agenda, expand our global footprint, and continue empowering enterprises to thrive in the digital economy.”

Drawing on its vast experience in nurturing global software enterprises, EQT will support WSO2’s management team in this crucial phase of growth. This acquisition is strategically aligned with EQT’s global portfolio, which includes other significant players like Billtrust, IFS, and Waystar.

The financial specifics of the deal remain undisclosed, and the transaction is expected to close in the second half of 2024. Legal advice for the acquisition was provided by Ropes & Gray and Simpson Thacher & Bartlett, with JP Morgan and Cooley advising the selling shareholders.

With this acquisition, EQT Private Capital Asia is projected to have invested about 45 – 50 percent of BPEA Fund VIII, including various stages of investment commitments and deals.

EQT Private Capital Asia’s acquisition of WSO2 underscores its commitment to expanding its influence in the global software market, particularly at a time when digital transformation is more critical than ever. This move not only enhances EQT’s portfolio but also sets a robust foundation for WSO2’s continued innovation and market leadership.