Permira to acquire software firm TeamViewer from GFI Software

Permira is to acquire TeamViewer for an undisclosed sum. TeamViewer is a global provider of secure remote support software and online meetings. TeamViewer is being acquired from GFI Software, a European-based infrastructure software provider. Nomura, a Japanese financial holding company, acted as lead financial adviser to Permira.

PRESS RELEASE

Permira, the European private equity firm with global reach, announced today that a company owned by the Permira funds has entered into an agreement to acquire TeamViewer(www.teamviewer.com), a leading global provider of secure remote support software and Online Meetings, for an undisclosed sum.

TeamViewer is the world’s most downloaded remote support solution for consumers and small and medium-size businesses (SMB) and can connect any device or server around the world within a few seconds. Founded in 2005 and headquartered in Germany, TeamViewer’s remote support product has been installed on more than 500 million devices and is being used by 130 million active users, including over 200,000 SMB commercial customers, across more than 100 countries today. TeamViewer has a strong track record of double digit revenue growth driven by the ongoing shift to mobile working, the increase in IT support outsourcing and the proliferation of devices. In addition, TeamViewer benefits from strong network effects as its large installed customer base and the continued growth in the number of active users drive adoption of its product for commercial use.

The Permira funds’ investment will support the company’s growth plans, including further penetration of its core customer base in Western Europe and North America and continuing expansion in emerging markets including Latin America and the Asia Pacific region. This investment draws on Permira’s extensive knowledge of the software industry, following successful recent investments in companies such as NDS, Genesys, Ancestry.com and Renaissance Learning.

“TeamViewer is well-positioned to capitalize on the growing demands of companies to provide secure remote access to their staff and customers alike,” said Richard Sanders, Partner and co-Head of the TMT Group at Permira. “Already a market leader, thanks to the ease of use, security and great value of its products, the company has lots of potential to increase the breadth of services it provides to its loyal SMB customer base and expand in less penetrated emerging markets.”

Jörg Rockenhäuser, Partner and Head of Germany at Permira commented, “This investment fits squarely into the Permira funds’ strategy. It involves the close collaboration of our global TMT group and our German team and builds on our longstanding expertise in the software market. We look forward to backing TeamViewer’s highly successful management team as the company enters its next phase of growth.”

“This is an exciting new chapter for our company, and we look forward to working with the Permira team” said Holger Felgner, CEO of TeamViewer. “This is an endorsement for TeamViewer and our highly talented workforce. We are pleased that Permira shares our vision for the future growth of the company.”

TeamViewer is being acquired from GFI Software, a European based company which is a global leader in providing infrastructure software for the SMB market. GFI Software is backed by Insight Venture Partners, a leader in software and software enabled services investing. The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in July 2014.

GFI Software’s CEO, Walter Scott said, “Permira is acquiring a fantastic asset with a strong management team. TeamViewer has seen enormous growth and innovation as part of GFI Software. This transaction will help GFI Software continue to focus on its leading GFI MAX™ and GFI Cloud™ solutions for small and medium sized businesses around the world.” GFI Software and TeamViewer will continue to work closely on a number of commercial products after the closing of the transaction.

As part of the transaction GFI Software or certain of its major shareholders, including Insight Venture Partners, may continue to retain equity in the ongoing TeamViewer business in partnership with the Permira funds. Jeff Horing of Insight Venture Partners, GFI Software’s largest shareholder said, “We are very proud of the significant growth of TeamViewer as part of GFI Software and we have every confidence in TeamViewer’s continued success as part of the Permira funds’ portfolio of companies.”

About TeamViewer

Founded in 2005 and headquartered in Germany, TeamViewer is a leading global provider of secure remote support software with a focus on the SMB market. The company offers an easy to install and use solution encompassing remote access/ administration, multi-user web-conferencing, desktop and file sharing. TeamViewer’s remote support product has more than 130 million active users, including 200,000 commercial users, across over 100 countries.

About Permira

Permira is a European private equity firm with global reach. The Permira funds, raised from pension funds and other institutions, make long-term investments in companies with the ambition of transforming their performance and driving sustainable growth. Founded in 1985, the firm advises funds with a total committed capital of approximately €25 billion.

The Permira funds specialise in investing in five key sectors: Consumer, Financial Services, Healthcare, Industrials and TMT. Recent investments in the TMT sector have included Renaissance Learning, Genesys, LegalZoom and Ancestry.com. Permira employs over 120 professionals based in Frankfurt, Guernsey, Hong Kong, London, Luxembourg, Madrid, Menlo Park, Milan, New York, Paris, Stockholm and Tokyo. The Permira funds have a long track record of investing in successful companies in Germany, including Hugo Boss, ProSieben Sat.1, Cognis and CABB.

About GFI Software

GFI Software™ develops quality IT solutions for small to mid-sized businesses with generally up to 1,000 users. GFI® offers two main technology solutions: GFI MAX™, which enables managed service providers (MSPs) to deliver superior services to their customers; and GFI Cloud™, which empowers companies with their own internal IT teams to manage and maintain their networks via the cloud. Serving an expanding customer base of more than 200,000 companies, GFI’s product line also includes network security, anti-spam, patch management, faxing, mail archiving and web monitoring. GFI is a channel-focused company with thousands of partners throughout the world. The company has received numerous awards and industry accolades, and is a longtime Microsoft® Gold ISV Partner. GFI Software is being represented in this transaction by Pillar Capital Advisors and Willkie Farr & Gallagher LLP.

About Insight Venture Partners

Insight Venture Partners is a leading venture capital and private equity firm investing in eCommerce, Internet, on-premise and SaaS-based software and data-services companies. Founded in 1995, Insight has raised more than $7.6 billion and made more than 200 investments worldwide. Insight’s mission is to find, fund and work successfully with visionary executives who are driving change in their industries. We provide founders with practical, hands-on growth expertise to foster long-term success.

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