Private equity firm Silver Lake is set to merge two French software companies, Cegid and Silae, into a group worth more than €10bn, aiming to offset AI's impact on the sector and create a European national champion. The California-based buyout group will announce plans to combine the companies into a European entity with €1.6bn in annual revenue, selling accounting, HR, and other enterprise services. Silver Lake will own between 66 and 75 percent of the combined company. Part of the rationale is that a larger group would be easier to list in Europe. The merger is not expected to return funds to Silver Lake or minority investors. Silver Lake's Europe-based managing partner Christian Lucas, who has run both investments, will serve as chair of the combined group.

The planned transaction comes as the private equity sector grapples with AI advances affecting software companies acquired at high valuations through debt-fueled deals. Software companies were popular buyout targets due to recurring revenues. However, new AI agents released in early 2026 triggered a software stock sell-off and halted dealmaking. This led Visma, owned by Hg and valued at €19bn, to shelve a London listing. Advisers note challenges in assessing long-term software value.

Merging Cegid and Silae would allow combining key data and integrating software, enabling greater AI investment. The move aims to build a European champion. Christian Pedersen, an executive at IFS, will become CEO of the combined group, following the departure of the former Cegid CEO. Silver Lake has replaced several senior Cegid management members in the past year. Cegid's credit rating was downgraded by S&P Global due to high debt from acquisitions, including a €1.1bn raise for fintech Shine.