EQT acquires WSO2, a leading API and identity management software company, for over $600 million

Swedish investment giant EQT has acquired WSO2, a company that provides API management and identity and access management services for enterprises, in a deal valued at “more than” $600 million. WSO2, founded in Sri Lanka in 2005, has raised around $130 million in funding from investors such as Intel, Cisco, and Goldman Sachs.

The company’s products include an open-source API manager and an Identity Server similar to Okta, used by businesses for managing identity and access functionality in their apps. WSO2’s CEO, Sanjiva Weerawarana, has a strong track record in the open-source sphere and was one of the main designers of the Ballerina programming language.

EQT’s subsidiary, EQT Private Capital Asia, made the acquisition, citing WSO2’s global customer base that includes AT&T, Honda, and Axa as a key factor in their decision to invest. With cloud computing and AI driving demand for security infrastructure, WSO2 was an appealing proposition for EQT, a firm with recent experience in the enterprise software space.

Hari Gopalakrishnan, partner at EQT Private Capital Asia, stated, “Software is a key focus sector for EQT, and WSO2 is a strong company that has scaled globally with an enterprise customer base spread across the US and Europe.” The acquisition is expected to close in the second half of 2024.

Overall, the acquisition of WSO2 by EQT highlights the growing importance of API management and identity and access management services in the enterprise sector, as businesses continue to prioritize digital transformation and security infrastructure in the era of cloud computing and AI.