Software AG (XTER:SOW, Financial), a German-headquartered business infrastructure software solutions provider, was a top detractor from the Fund’s fourth-quarter performance. In November, the company delivered mixed third-quarter earnings results. Bookings growth within Software AG’s digital business platform (DBP) fell short of management’s guidance, as well as our estimates, as a result of deal slippage and challenges in converting the company’s sales funnel in a timely fashion. However, management indicated more promising DBP bookings growth for the year and observed that the issues were mostly timing-related in nature. In December, Software AG reported that Silver Lake Partners, an American global private equity firm that focuses on technology investments, will be investing in the company and securing two board seats. Although the company’s share price reacted negatively to the news, these changes are intended to accelerate growth, and Software AG is hoping to leverage Silver Lake’s transformation expertise and brand recognition to fuel its merger-and-acquisition strategy.
From David Herro (Trades, Portfolio)'s Oakmark Intl Small Cap (Trades, Portfolio) Fund's fourth-quarter 2021 letter.
