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Permira-backed TeamViewer to hold IPO before end of year

  • German software group expects valuation of €4bn–5bn, Permira to sell 30–40% stake
  • Revenue climbed 36% to €142m in H1 2019 – 360,000 subscribers to cloud-based subscription model
  • “We are global, but not too global. There is still significant growth potential,” CEO Oliver Steil says

Software company TeamViewer kicked off the new European IPO season in earnest on Thursday after announcing its intention to list in Frankfurt and seek a valuation of up to €5bn, which would make it one of the largest flotations for a German tech enterprise in several years.

A source close to the company told the Financial Times that private equity firm Permira, which completed an €870m deal to acquire TeamViewer in 2014, will sell between 30% and 40% of its stake, but it is planning to remain as a majority stakeholder. The share sale is set to take place before 2020.

TeamViewer generated revenue of €230m in 2018 from its cloud-based tech and software, which empowers online users in a range of sectors to collaborate via meetings and remote access. The company says a total of 2 billion devices have tapped into its suite of products, while around 45 million devices are concurrently using them globally.

News of a software-based IPO may come as a surprise to investors as German tech offerings are usually centred around e-commerce such as Delivery Hero and HelloFresh – both backed by Rocket Internet. TeamViewer, headquartered in the southern city of Göppingen, could become Germany’s second-largest software company on the stock exchange if the €4bn to €5bn valuation is met.

“The IPO will be a key milestone for TeamViewer… We remain strongly committed to the company as a major shareholder after the IPO since we see huge growth potential for TeamViewer,” Permira exec, Jörg Rockenhäuser said in a statement.

TeamViewer’s commitment ends a barren period for European IPOs, which has seen the number of flotations decline to the lowest level for almost 10 years. More than 300 European companies went public in 2018 but, as of 29thAugust 2019, just 106 have listed – and recent offerings have underwhelmed in terms of proceeds raised.

Just three companies have held €1bn-plus IPOs during the first eight months of the year, with Italian lender Nexi still leading the way with its €9 per share sale back in April, which raised in excess of €2bn. Traton, Volkswagen’s truck unit and Trainline also surpassed the €1bn mark.

However, TeamViewer may have opened the floodgates for Q3 and Q4 IPOs as Sweden’s EQT Partners also announced on Thursday that it would list on the Stockholm Stock Exchange during the next week, after naming Morgan Stanley and Goldman Sachs among its book runners.

One banker with knowledge of upcoming IPOs said more companies are set to announce listings with a view to completing deals in September. He added: “There is no unifying sectoral theme in Europe. For the first wave of IPOs, the focus will be on size and quality.”