Swedish private equity firm EQT is exploring the sale of enterprise Linux provider SUSE at a valuation of around $6 billion (€5.5 billion), working with Arma Partners to test interest from global buyers. The process revives concerns over Europe's IT sovereignty as the German-origin company, owned by EQT since a 2023 privatization, faces another ownership shift.
SUSE, founded in 1992 in Germany as Software und System-Entwicklung and now headquartered in Luxembourg, has a history of frequent ownership changes. It was acquired by Novell in 2003, then by Attachmate in 2010 as part of its $2.2 billion Novell purchase, before moving to Micro Focus in 2014. EQT acquired SUSE from Micro Focus in 2018 for about $2.5 billion, took it public on the Frankfurt Stock Exchange in 2021, and privatized it again in 2023 for €2.72 billion ($3 billion).
The company has expanded through acquisitions, including Rancher Labs in 2020, Dutch firm StackState in 2024, and US-based Losant in 2026. SUSE serves Fortune 500 clients like Microsoft, BMW, and SAP with Linux solutions for cloud, mainframe, edge, data centers, and enterprise AI workloads. It reports around $800 million in annual revenue and over $250 million in operating profit, positioning it as Red Hat's primary European rival—though far below IBM's $34 billion Red Hat acquisition in 2019.
Unlike Red Hat, which has limited RHEL source code access, SUSE upholds open-source principles, allowing customers to migrate freely. CEO Dirk-Peter van Leeuwen stated in a 2025 interview, "SUSE has an advantage as a European player," while noting "open source knows no boundaries." The potential sale raises alarms about digital sovereignty, with analysts fearing a non-European buyer could control key enterprise Linux support in the region. Alternatives like Canonical's Ubuntu exist but are UK-based. Regulators may scrutinize deals involving critical IT infrastructure.
The process occurs amid AI-driven software valuation fluctuations, where SUSE benefits from demand for stable open-source platforms. Questions linger over the independent openSUSE community, which has weathered past transitions. Neither EQT nor SUSE has commented, and no deal is assured as EQT seeks to capitalize on the mature asset.
