Aareal and Advent sell €3.9bn proptech division to TPG
Aareal Bank and Advent International have agreed to sell Aareon, its circa €3.9bn (£3.3bn) subsidiary focusing on software-as-a-service solutions for the property industry, to TPG and CDPQ.
Aareal Bank’s equity stake in Aareon is worth about €2.1bn.
Aareon will become an independent company majority-owned by TPG through TPG Capital, the firm’s US and European private equity platform.
Aareal Bank and Advent International have agreed to sell Aareon, its circa €3.9bn (£3.3bn) subsidiary focusing on software-as-a-service solutions for the property industry, to TPG and CDPQ.
Aareal Bank’s equity stake in Aareon is worth about €2.1bn.
Aareon will become an independent company majority-owned by TPG through TPG Capital, the firm’s US and European private equity platform.
CDPQ will take a minority stake, while Advent will also retain a minority interest.
Aareon is headquartered in Mainz and focuses on automated, end-to-end processes connecting property managers and owners across the residential and commercial real estate sectors.
Closing on the deal is expected to take place in the second half of 2024, subject to customary approvals.
Following the transaction, Aareal Bank and Aareon will continue to support clients through their joint venture First Financial Software, which specialises in payment software solutions for the property sector and related industries.
Flavio Porciani, partner at TPG, said: “The need for comprehensive property management solutions is growing amid a trend towards digitalisation of real estate workflows and an increasingly complex regulatory environment.
“Aareon’s platform is built to support this evolution, providing owners and managers an integrated, modern system that improves connectivity and streamlines business operations.”
Jeff Paduch, managing partner of Advent International and supervisory board member of Aareon, said: “The company is well positioned to continue to lead innovation for its customers in the European housing ecosystem and is on a path of sustainable growth with exciting opportunities ahead for all stakeholders.”
Arma Partners acted as lead financial advisor and Goldman Sachs acted as financial advisor to Advent International and Aareal. CMS served as legal counsel for Aareal while Weil, Gotshal & Manges provided legal advice to Advent International. Morgan Stanley acted as financial advisor to TPG and CDPQ and Kirkland & Ellis served as their legal counsel.
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