FRANKFURT (Reuters) - Hedge fund manager David Einhorn’s Greenlight Capital said on Tuesday it took an unspecified stake in German business software developer Software AG (SOWGn.DE), describing the shares as undervalued.
Greenlight said in a letter to its investors that Software stock was purchased at 31.05 euros per share, representing a multiple of 2.3 times revenue and a “a deep discount to comparable companies”.
“Under new leadership, the company is transforming its business towards a subscription model from its volatile, legacy licensing model,” the fund added.
Software shares closed 0.2% higher at 33.25 euros on Tuesday.
Reporting by Ludwig Burger; editing by David Evans