Hellman & Friedman transfers TeamSystem from fund VII to fund IX

Alessia Argentieri
20 January 2021

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Hellman & Friedman Capital Partners IX (HFCP IX) has acquired business management software company TeamSystem from an entity controlled by Hellman & Friedman Capital Partners VII (HFCP VII).

As part of the deal, Hg will sell its minority holding in TeamSystem, held via Hg's Genesis 6 Fund. HgCapital Trust will then invest approximately £14.3m in TeamSystem, with other institutional clients of Hg investing alongside HGT through the Hg Genesis 8 Fund. As a result of this transaction, Hg will remain as a minority investor in the business.

In addition, the company's management reinvested as part of the equity funding of the transaction.

Upon completion of the acquisition, which is expected to occur during the first quarter of 2021, TeamSystem plans to redeem its outstanding €200m senior secured floating rate notes due 2025 and €550m senior secured floating rate notes due 2023.

Hellman & Friedman acquired a majority stake in TeamSystem from Hg, Bain Capital, ICG and the company's management board in December 2015, investing via HFCP VII - the fund had closed on $8.8bn in 2009. As part of the deal, HgCapital and the management team retained a minority stake in the business. The deal valued the company at around €1.2bn.

Previous funding
Palamon Capital Partners invested in TeamSystem in 2000. Subsequently, Bain Capital acquired the company from Palamon in 2004 for €274m – including €40m of mezzanine facilities. With this exit, Palamon realised a 4.1x return and 52% IRR.

Hg bought a majority stake inTeamSystem from Bain Capital at an enterprise value of €565m in August 2010.The deal value equated to about 11.3x the company's EBITDA at the time.

Company
Founded in 1979, TeamSystem specialises in the development of business management software, ERP and tools for tax, payroll, accounting and budgeting management.

Based in Pesaro, the company primarily serves small and medium-sized businesses and professionals. Employing a staff of 1,900 people, TeamSystem generated a turnover of €418m in 2019.

People
TeamSystem – Federico Leproux (CEO).
Hellman & Friedman – Blake Kleinman (partner).