Private equity company Warburg Pincus intends to acquire German software company PSI Software for over 700 million euros ($813.26 million), according to reports.

PSI's software assists in managing power and gas transmission networks along with manufacturing facilities. It is rebounding from a cyberattack that occurred last year and on Friday it confirmed that it was negotiating to sell itself after the Reuters report.

Its shares surged almost 11percent on Friday following the news and finished at 33.2 euros per share.

Warburg Pincus' agreement will assess PSI at 45 euros per share, representing a roughly 50percent premium over the software firm's closing price.

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PSI announced that its board endorses Warburg Pincus' proposal and plans to advise its shareholders to accept it. PSI intends to remove itself from the German stock market following the completion of the agreement.

PSI mentioned that Warburg Pincus would retain the company's managerial framework and its base in Berlin.

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PSI announced that Warburg Pincus has finalized agreements for approximately 28.5percent of its equity with key shareholders. The statement indicated that an undisclosed anchor shareholder will partially reinvest its earnings together with Warburg Pincus into PSI's ownership framework.

German entrepreneur and newsletter publisher Norman Rentrop holds a 23percent share in PSI, making him the largest shareholder, whereas German utility company E.ON is the second-largest investor, owning approximately 18percent.

 

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Warburg and PSI announced that E.ON will keep its interest in PSI and will maintain its role as a strategic investor for the company.

PSI reported a loss before interest and taxes of 15.2 million euros ($17.62 million) last year due to being hindered for weeks by the cyberattack.