Private equity firms Francisco Partners and KKR have agreed to buy minority stakes in Italian software company TeamSystem from its main investor Hellman & Friedman, according to people familiar with the deal.
Francisco Partners will acquire about 10% of TeamSystem, while KKR and other investors will purchase a further 5%, the sources said.
The transaction values TeamSystem at between €8 billion and €10 billion, reflecting continued investor interest in business software despite concerns over artificial intelligence disrupting the sector.
H&F, which invested in TeamSystem in 2016, will use the deal to reduce its stake while transferring its remaining holding to another fund it manages.
TeamSystem provides accounting, payroll and business management software. Its products are closely linked to government e invoicing systems used by small and medium sized businesses, making them less vulnerable to AI based competition, according to one source.
The company generates more than €1.3 billion in annual revenue and about €600 million in core earnings. H&F held about 69% of TeamSystem as of July, with Silver Lake and Abu Dhabi’s ADIA also holding significant stakes.
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