Bain Capital explores options for $5B Rocket Software

(Bloomberg) –Bain Capital is exploring options including a sale of Rocket Software Inc., which could be valued at more than $5 billion, including debt, in a transaction, according to people with knowledge of the matter.

The private equity firm is planning to solicit interest in the Waltham, Massachusetts-based company in 2024, said the people, who asked not to be identified discussing confidential information.

Bain hasn’t made a final decision to pursue a sale and its plans could still change, the people said. Rocket is also continuing to pursue growth, including via acquisitions of its own, one of the people said. 

A spokesperson for Bain declined to comment. A representative for Rocket didn’t immediately respond to a request for comment.

Bain acquired a majority stake in Rocket, led by president and Chief Executive Officer Milan Shetti, in 2018. The enterprise value of that transaction was roughly $2 billion, the company said at the time.

Under Bain’s stewardship, Rocket has made acquisitions of companies including B.O.S., Key Resources Inc. and ASG Technologies. 

Rocket develops enterprise software for companies across various industries. Its customers include Liberty Mutual Insurance, M&T Bank Corp., Credit Agricole SA, Pernod Ricard SA and PVH Corp., according to its website.