Francisco Partners and KKR to Buy Minority Stakes in Italy's TeamSystem
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Private equity firms Francisco Partners and KKR have agreed to buy minority stakes in Italian software company TeamSystem from its main investor Hellman & Friedman (H&F), according to sources. H&F agreed to sell about 10% of TeamSystem to Francisco Partners and another roughly 5% to other investors including KKR. The deal values TeamSystem at between 8 billion and 10 billion euros ($9.27 billion and $11.59 billion). TeamSystem provides accounting, payroll and business management software. The transaction comes after a sharp sell-off in software stocks this year, partly driven by market concerns over AI's impact on the sector. The deal allows H&F to cash out part of its investment while transferring remaining shares to another fund. One source said TeamSystem's products are tightly integrated with government e-invoicing systems, making them harder for AI-driven competitors to replicate. H&F first invested in TeamSystem in 2016 and held a 69% stake as of July. The valuation implies approximately 16.5 to 17 times TeamSystem's adjusted EBITDA of 476 million euros for 2025.
Source report
MILAN/LONDON, Sept 11 (Reuters) — Private equity firms Francisco Partners and KKR have agreed to acquire minority stakes in Italian software company TeamSystem from its main investor Hellman & Friedman (H&F), according to three people with knowledge of the matter.
Deal Details
- H&F agreed to sell approximately 10% of TeamSystem to Francisco Partners.
- Another 5% will be sold to other investors, including KKR.
- The deal values TeamSystem at between €8 billion and €10 billion ($9.27 billion to $11.59 billion).
TeamSystem provides accounting, payroll, and business management software for companies and professionals.
Market Context
The transaction follows a sharp sell-off in software stocks this year, partly driven by market concerns over artificial intelligence's impact on the sector. These fears have weighed heavily on valuations and threatened deals across the industry.
Against this backdrop, the deal is an encouraging sign for private equity firms holding large software assets in their portfolios.
Transaction Structure
The deal allows H&F to cash out part of its investment while transferring its remaining shares to another fund managed by the private equity firm, according to two of the people and a third independent source. All sources requested anonymity because the terms are confidential.
Francisco Partners, KKR, and TeamSystem all declined to comment.
The deal also demonstrates H&F's ability to reduce its significant stake through a so-called private IPO process, enabling it to return capital to investors as sponsors struggle to take their largest portfolio companies public.
Betting on Business Software
One source noted that TeamSystem's products are tightly integrated with government e-invoicing systems used by small and medium-sized enterprises, making them harder for AI-driven competitors to replicate.
H&F's Investment History
- H&F first invested in TeamSystem in 2016.
- As of July, H&F held a 69% stake in the company.
- In 2023, Silver Lake and Abu Dhabi sovereign wealth fund ADIA acquired stakes from H&F, holding 12.8% and 9.8%, respectively.
Valuation and Financials
The Financial Times reported in July that H&F was seeking a valuation of around €8 billion for the business. That valuation implies approximately 16.5 to 17 times TeamSystem's adjusted EBITDA of €476 million for 2025.
According to one source:
- TeamSystem currently generates revenue exceeding €1.3 billion.
- Core earnings are approximately €600 million.
- When H&F first invested, the company's EBITDA was €75 million.
Industry Developments
Elsewhere in the sector, private equity firm Silver Lake announced this week it would merge its two French software companies, Cegid and Silae, creating a group valued at more than €10 billion.
($1 = 0.8628 euros)
Source: Reuters
Source
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