Private equity fund Silver Lake plans to merge two of its software firms, as the sector grapples with AI disruption.
French firms Cegid, which sells business management software, and Silae, a payroll and HR platform, would combine in a deal that would bring together payroll, accounting, e-invoicing, digital finance and payments data, and create a 1,400-person developer team to invest in AI.
The deal has an enterprise value of more than 10 billion euros ($11.6 billion), per a statement announcing it.
Software stocks have tumbled amid fears AI would drive a "SaaSpocalypse." Some have since recovered, with May marking the sector's best month since 2001, though concerns persist.
In a statement, the companies said that joining forces would enable them to scale investment in research and development amid the emergence of AI.