EQT to acquire WSO2

• Acquisition will enable accelerated investment in innovative technology for digital transformation

WSO2, the leader in digital transformation technology, announced on Friday that it has signed a definitive agreement to be acquired by EQT. 

Financial details of the transaction were not disclosed.

“We are thrilled to partner with EQT as we embark on the next phase of WSO2’s journey,” said WSO2 CEO and Founder Dr. Sanjiva Weerawarana. “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.”

Since its inception in 2005, WSO2 has been at the forefront of building innovative software that allows organisations to seamlessly deliver digital experiences. 

Today, WSO2’s platform offers a complete set of market leading solutions across integration, API management, identity and access management (IAM) and application development. Thousands of organisations, including hundreds of the world’s largest corporations, top universities, and governments, rely on WSO2’s cloud native software as a service (SaaS) and open-source offerings to drive their digital initiatives — executing 60 trillion transactions and managing over 1 billion identities each year. 

Over 80% of revenue of WSO2 comes from blue-chip customers in the Americas and EMEA. 

With EQT as its new partner, WSO2 reaffirms its commitment to delivering innovative solutions that address the evolving needs of modern businesses.

Looking ahead, “WSO2 remains focused on driving customer success, fostering community collaboration, and delivering innovative software that unlocks new value creation opportunities for organisations worldwide,” added Weerawarana.

EQT Private Capital Asia Partner advisory team Hari Gopalakrishnan said: “We are excited to partner with WSO2 as it helps customers across industries drive their digital transformation and enhance operational resilience.”

“We believe that WSO2 is well-positioned to capitalise on long-term trends such as digital transformation and rising generative AI adoption and are confident of drawing on EQT’s proven software value creation playbook to further accelerate WSO2’s strong growth,” he said adding, “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.” 

Both the Application Programming Interface (API) Management and Integration as well as Identity and Access Management (IAM) markets are witnessing significant tailwinds, driven by long-term trends such as the transition to hybrid and multi-cloud workloads, rising API volumes, accelerated adoption of Generative AI, and increasing sophistication of cyberattacks. WSO2 is well-positioned to capitalise on this robust market growth on the back of their strong product suite and entrenched customer relationships.

EQT Private Capital Asia will support WSO2’s next phase of accelerated growth and innovation, drawing on EQT’s deep experience in the software space, global network of industry experts and dedicated digital value-creation team. WSO2 joins EQT’s extensive global portfolio of enterprise software companies that already includes firms such as Billtrust, IFS, SUSE, Storable, and Waystar.

EQT is a purpose-driven global investment organisation with EUR 242 billion in total assets under management and the third largest private equity firm globally. Founded three decades ago by the Swedish Wallenberg family, EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas and supports them in achieving sustainable growth, operational excellence and market leadership. EQT’s extensive global portfolio of enterprise software companies includes firms such as IFS, SUSE, thinkproject, and more. 

The transaction is subject to customary conditions and approvals. J.P. Morgan served as exclusive financial advisor to WSO2.