Darmstadt-based Software AG, Germany’s second largest software company, is to float on the Frankfurt Stock Exchange at the end of this year or, at latest, by the first quarter of 1999. Earlier this year the company announced its desire to float, riding the wave of its return to profitability in 1997 under the leadership of its new CEO, Dr. Erwin Konigs, who had taken over the previous September. However, his predecessor, Peter Schnell, had stood in the way of that ambition, via his continued influence over the charitable trusts that control SAG’s capital. Schnell is said to mistrust the plan to go public, but reliable sources in Germany say his resistance was overcome this week, so that the trusts gave the go-ahead to the plan. The company’s results for 1997 showed a pre-tax profit of $28m on revenues of $407m, with the trend continuing in the first quarter of this year, when it reported a profit of $5.4m on revenue up 61.3% at $55.9m. Sources add that with the German outfit sitting on the proceeds of the sale of a controlling 75% share in its US subsidiary, Software AG Americas Inc to Thayer Capital Partners last year, SAG wants to add the funds raised from the flotation to get on the acquisition trail and is looking to buy companies in sectors such as tools development.
