(Bloomberg) -- The owners of software maker TeamViewer GmbH are planning a Frankfurt listing this year that could be the biggest German initial public offering for a technology company in nearly two decades.
Permira will sell shares in the listing, planned before year-end, via its holding firm, TigerLuxOne, the company said in a statement Wednesday. TeamViewer could seek a valuation of 4 billion euros ($4.4 billion) to 5 billion euros, people familiar with the matter said previously.
Permira could sell 30% to 40% of the company, depending on investor demand, the people said. While Germany has a bevy of established tech companies, including software giant SAP SE, there have been few sizable newcomers since chipmaker Infineon Technologies AG listed in 2000.
“It is hard to pick the right moment in time but our big growth combined with strong profitability, even if market conditions have been difficult, makes our financial profile attractive to investors,” TeamViewer Chief Executive Officer Oliver Steil said in an interview on Wednesday. “There is a lot going on in the space and it's still a bit early, but we will see more tech players emerge in a few years.”
TeamViewer and Permira declined to comment on the size of the offering.
Europe is grappling with its worst market for IPOs in years. Escalating trade wars and the specter of Brexit has lead to the fewest companies choosing to go public in a decade, according to data compiled by Bloomberg.
Read More: Going Public With One Hand Tied Behind Your Back
Still, there are signs that the environment is improving. Besides TeamViewer, Helios Towers Plc, one of sub-Saharan Africa's largest mobile-phone tower operators, and French glass bottle maker Verallia are gearing up to kick off their own European IPOs in the next few weeks, people familiar with the matter have said.
Based in Goeppingen in southern Germany and founded in 2005, TeamViewer develops software for collaboration and remote desktop access. Permira bought the company for 870 million euros in 2014. It has since partnered with firms including Alibaba Group Holding Ltd. and Salesforce.com Inc. to bolster its cloud offerings.
Financial Growth
TeamViewer's cash billings grew more than 35% in the first half, accelerating from 25% last year, to more than 140 million euros. It says its software has been installed on more than 2 billion devices.
For the full year, the company said it expects billings growth of 35% to 39% and adjusted earnings before interest, taxes, depreciation and amortization of as much as 183 million euros.
“Going down the IPO route versus selling means that we can remain an independent player, and it is important for us to sustain our independence,” Steil said.
Goldman Sachs Group Inc. and Morgan Stanley are arranging the IPO, with Bank of America Corp., Barclays Plc and RBC Capital Markets. Lilja & Co. is acting as an adviser to Permira and TeamViewer.
To contact the reporters on this story: Myriam Balezou in London at mbalezou@bloomberg.net;Aaron Kirchfeld in London at akirchfeld@bloomberg.net;Sarah Syed in London at ssyed35@bloomberg.net
To contact the editors responsible for this story: Dinesh Nair at dnair5@bloomberg.net, Amy Thomson, Giles Turner
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