SUSE, a Linux distribution company controlled by private equity firm EQT, has agreed to acquire Rancher Labs, a start-up with technology that helps organizations run software in virtual containers across many servers.

From a report:
The companies announced the deal Wednesday but didn’t disclose the terms. Two people familiar with the deal said SUSE is paying $600 million to $700 million. The transaction suggests that even during a recession, demand remains high for technology that can enable companies to operate more efficiently. Talks between the companies began in the spring, and the process became competitive with additional bids, Ursheet Parikh, a partner at Rancher backer Mayfield Fund, told CNBC on Tuesday. There were “lots of Zoom calls,” Parikh said. In the past few years, with the rise of start-ups such as Docker, containers became a trendy alternative to more traditional virtualization technology for running applications on each computer server in a company data center. Amazon, Microsoft and other cloud providers came out with services that developers can use to place code in containers, and in 2017 SUSE introduced its own service for managing containers. The companies haven’t finalized integration plans as the deal still faces regulatory approval.