USU Software AG Gains New Momentum with Thoma Bravo Deal

USU Software AG has seen a significant turnaround following the announcement of a major stakeholder acquisition by Thoma Bravo, a US private equity firm. This strategic move comes after the company's shares were delisted from most exchanges, except Hamburg, with the last sales recommendation at €18.50 per share.

The deal values USU's product business between €200-300 million, leaving USU with a 25% minority stake. The initial valuation at the delisting offer had placed the entire company, including services, at €188 million. This overlooks the recent recovery of licensing sales and the product business EBIT margin improvement from 4.4% to 7.4% in Q1 2024.

With shares trading around €22, the service business seems undervalued at €20 million. Analyst recommendations have shifted to "Buy," with a price target of €30, highlighting the potential for growth and current undervaluation.