Bain Capital to buy majority stake in Rocket Software

(Reuters) - IT services company Rocket Software said on Monday private equity firm Bain Capital had agreed to take a majority stake in the privately held firm in a deal valued at about $2 billion.

The deal is the latest example of the private equity sector's appetite for software companies with predictable maintenance and subscription revenue and a loyal client base.

Waltham, Massachusetts-based Rocket Software will continue to operate under its current management team, led by President and Chief Executive Officer Andy Youniss, the company said.

Rocket Software, a provider of technology services to companies using products from International Business Machines Corp (NYSE: IBM), was founded in 1990 and is owned by private equity firm Court Square Capital Partners.

The deal is expected to close during the fourth quarter of 2018.

Morgan Stanley & Co LLC and Credit Suisse served as financial advisers and Dechert LLP served as legal adviser to Rocket Software.

Kirkland & Ellis is serving as legal counsel and PwC is acting as accounting adviser to Bain Capital.

(Reporting by Akanksha Rana in Bengaluru; Editing by Shailesh Kuber and Anil D'Silva)

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