Carlyle Group is readying to sell UK-based Eggplant Software, a software testing and monitoring company, four sources familiar with the matter told PE Hub.
The process is expected to kickoff in the first quarter of 2020, the sources said.
Evercore will advise the company on its sale, the people said.
Eggplant, headquartered in London, provides automated and AI-driven software testing tools for companies across different industries, including financial services, healthcare, retail, telecom and media.
The company was founded in 2008 as Testplant. In 2018, Testplant acquired NCC Group’s web performance division along with a portfolio of its blue chip customers, including Argos, BMW, Barclays, John Lewis, House of Fraser, Sainsbury’s Bank, easyJet, and Auto Trader.
As part of the deal, Testplant rebranded the combined company under the name Eggplant, its leading product suite.
Eggplant generated around €8 million ($8.85 million) in 2019 Ebitda and around €50 million ($55.3 million) in revenue, three sources said.
The deal is expected to trade at a revenue multiple of nearly 7.5x to 8x, suggesting a transaction valued at €380 million ($420.5 million) to €400 million ($442.6 million), the sources said.
Carlyle invested in the company in January 2016 out of Carlyle Europe Technology Partners III, which closed on its hard-cap of €656.5 million two years earlier. The fund invests in TMT and other emerging technology companies across Europe.
In October, the firm closed its fifth European fund. Carlyle Europe Partners V fund raised €6.4 billion, exceeding its target by almost €1 billion.
Evercore declined to comment. Carlyle Group and Eggplant Software did not return PE Hub’s requests for comment before press time.
Action Item: Check out Carlyle’s form ADV.