The UK based private equity group HgCapital, predicted to declare the acquisition of TeamSystem, the Italian accounting software manufacturer, from Bain Capital in a bid worth about €565m.
The deal shall underline that how a mounting trend for private equity groups wishes to sell their best-acting assets to each other has pumped up a rally in buy-out activity during this year.
It might also be the recent in a cord of accounting software buy-outs by HgCapital athwart Europe, including Iris Software and Computer Software Group in the UK, Addison Software in Germany and Visma in Norway.
TeamSystem deals in software to 80,000 small and medium-sized groups in Italy to support them handle their accounts, payroll and human resources.
Ever since Bain procured it for €274m in the year 2004, the group has twofold its revenues and earnings before interest, tax, depreciation and amortization to €130m and €50m, respectively. The sale to HgCapital worth it at more than 11 times its 2010 EBITDA.
According to known source the deal via HgCapital had been engrossed by the high proportion of TeamSystem's sales that sways in from subscriptions, providing it good projections for future revenues and profits.