AutoForm bidder pool narrows to include Carlyle, Francisco Partners

The sale of the business has tightened after attracting early interest from a raft of sponsors and trade players, the sources said.

Permira, Onex, EQT, KKR and Hellman & Friedman, as well as industry players Roper Technologies, Dassault Systems and Hexagon, were flagged as potential bidders for the Astorg-backed business, as reported.

Despite it being described as a "fantastic business", some bidders dropped interest in the first round due to a lack of confidence in the company's growth story, one of the sources said. AutoForm has all major European automotive original equipment manufacturers (OEM) sewn up as customers, so the potential available market is limited, while expansion into adjacent verticals is considered challenging, as reported by Unquote sister publication Debtwire.

Moreover, US-based simulation software specialist Ansys is expected to launch a competitive product next year, which could threaten AutoForm's market position, the first source added. General uncertainty in the future of the automotive industry and the risks associated with that may also have deterred some bidders, the second source noted. AutoForm's platform-independent software – which is used in testing and design phases of manufacturing – so far remains untouched by structural changes, as reported. The company has also made the switch from software licences to a recurring subscription model.

Even with structural changes taking place with a move to electric vehicles, AutoForm is considered a category leader with a platform-independent software that continues to play a crucial role in the testing and design phases of manufacturing, as reported.

AutoForm, which specialises in software for the automotive industry, is expected to generate EUR 75m in EBITDA this year in the Evercore- and Jefferies-run sale, which is up from around EUR 27m six years ago when Astorg acquired the business. Previous reports have suggested that AutoForm could fetch a valuation of more than 30x EBITDA.

Founded in 1995 and located in Wilen near Wollerau in Switzerland, AutoForm is a spinoff from the Swiss Federal Institute of Technology, ETH Zurich.

Evercore, Jefferies and Morgan Stanley declined to comment. Carlyle and Francisco Partners and did not return a request for comment.

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