EQT reaps 3.2x on Automic sale

According to a source familiar with the situation, EQT will reap 3.2x money on the investment after a four-year holding period, which equals more than 30% IRR for the GP. The deal values the business at €600m EV, which is understood to be 13.6x its expected core earnings.

The deal saw the GP sell the business from its EQT VI vehicle and is expected to close in the first quarter of 2017.

The company doubled its revenues and tripled its EBITDA value during EQT's ownership period, the GP said in a statement. During this period, the company renamed from UC4 to Automic; it also bolstered its product development capacity and expanded its team.

Launched in February 2011, EQT VI held a final close on its €4.75m hard-cap in October 2011.

Previous funding
In July 2004, Capexit and TecNet Company Technologie acquired a minority stake in the business – then UC4 – for an undisclosed amount.

Subsequently, The Carlyle Group backed the company's MBO and acquired an 85% stake in the business in April 2006. The management team retained the remaining 15% stake.

More recently, EQT acquired a controlling stake in the company via its EQT VI fund in a deal valued at €220m in August 2012.

Company
Founded in 1985 and headquartered in Wolfsgraben, Austria, Automic develops a business automation software called One Automation, which helps enterprises to automate their IT and business systems. The company is based in Vienna and employs 650 people, according to press reports.

People
EQT Partners – Per Franzén (partner).
Automic – Todd DeLaughter (CEO).

Advisers
Vendors – Arma Partners (corporate finance); Kirkland & Ellis (legal); Schönherr Rechtsanwälte (legal).

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