Permira rejects low PE bids for Teamviewer

Oscar Geen
18 August 2017

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Permira has rejected speculative offers for its portfolio company Teamviewer from private equity bidders Vista Equity Partners and Hellman & Friedman.

The bids valued the company at 13-15x its €140m projected EBITDA, giving an EV of €1.8-2.1bn. This was short of Permira's targeted valuation of 16-17x, or up to €2.3bn, according to a source close to the situation.

EQT Partners and Cinven were also interested in the company, according to the source, who added that no formal process was initiated. Qatalyst Partners was appointed by Permira to assess the bids.

Teamviewer and Permira will now focus on developing the company. They will likely consider a sale in around two years, by which time they expect Internet-of-Things technologies to have developed and become more widespread, according to a source familiar with the plans.

Permira purchased Teamviewer for an enterprise value of €870m in 2013, drawing equity from its fifth fund. This valuation was around 8.5x its 2013 EBITDA, according to reports at the time.

Founded in 2005 and headquartered in Göppingen, TeamViewer is a remote collaboration platform with more than 160 million users on 800 million activated devices. It has partnered with corporates such as Alibaba and Salesforce and generated EBITDA of €107m in 2016, projecting an increase to €140m for 2017.

Permira and Teamviewer declined to comment.