Bain Capital Mulls $10 Billion Rocket Software Sale Amid AI Surge

Bain Capital is considering a sale of Rocket Software, potentially valuing the automation software provider at $10 billion. The decision comes as AI advancements prompt increased technology spending. Bain has enlisted Moelis and RBC Capital to guide Rocket's sale, potentially marking a significant private equity exit.

Bain Capital is evaluating options for Rocket Software, including a sale that could value the U.S. automation software firm at up to $10 billion, insiders indicate.

This move coincides with a rise in AI technology, compelling corporations to invest more in updating business software. IT spending worldwide is projected to increase by almost 10%, reaching $5.61 trillion this year according to Gartner.

Bain has hired Moelis and RBC Capital for counsel on the sale process, expected to commence soon. The sale could attract various private equity entities, considering Rocket's substantial scale and projected sale price between $8 billion and $10 billion.

The potential sale talks are preliminary, with no guarantees of a deal. A successful transaction could represent a major leveraged buyout, boosting the market with large private equity exits.

Bain Capital, Moelis, and Rocket chose not to comment, while RBC didn't immediately respond. Rocket Software, based in Waltham, Massachusetts, provides IT modernization services to over 12,500 corporations globally.

Should Bain successfully exit Rocket, it would underscore Bain's lucrative investment from 2018, where the firm acquired it for $2 billion, subsequently expanding Rocket's capabilities.

(With inputs from agencies.)