Private equity firm Silver Lake is merging its two software companies, Cegid and Silae, to create a more robust entity capable of competing in the rapidly changing landscape influenced by artificial intelligence. This merger will combine Cegid's business management software with Silae's payroll and HR platform, resulting in a company with a workforce of 1,400 developers focused on AI advancements.
The deal, which has an enterprise value exceeding 10 billion euros ($11.6 billion), is expected to generate annual revenues of approximately 1.6 billion euros ($1.9 billion). The merger is seen as a strategic move to scale research and development investments, particularly as the software sector faces pressures from AI innovations, which have led to significant stock fluctuations.
Silver Lake, which will maintain majority ownership of the new entity, anticipates that the combined strengths of Cegid and Silae will provide a comprehensive suite of AI-powered products tailored for small and medium-sized businesses in Europe. The transaction is pending regulatory approval and is projected to finalize in the first half of 2027