TPG Capital is looking to acquire a minority stake in Insight Partners-backed Kaseya, sources familiar with the process told Buyouts.
Evercore is advising on the process, the sources said.
The deal, which is nearly three weeks away from completion, is structured as a preferred equity investment that pays out periodic distributions, they said.
TPG is looking to buy from 25 percent to 35 percent of the company for nearly $150 million, one source said.
The company’s valuation hovers between $400 million and $500 million, according to the source.
Recently, the business moved from an onsite software license model to a cloud-based SaaS model, which is more efficient but required the company to spend money up front as part of the transition, hitting revenue, sources said.
Kaseya is the Dublin global provider of software that helps clients manage and control IT assets remotely from one web-based platform. It caters to companies in healthcare, education, finance, government and other industries.
Insight Partners acquired Kaseya in July 2013. The New York private equity and venture capital firm, with more than $20 billion in assets, invests in high-growth technology and software companies globally. Insight has cumulatively invested in more than 300 companies worldwide.
TPG declined comment on the deal. Insight Partners and Kaseya did not return requests for comment.
Action Item: Call TPG’s IR team at +1 817-871-4044.