Private equity firm Permira has successfully exited its investment in TeamViewer, a leading remote connectivity solutions provider, with a staggering $1 billion return on investment.
In a significant move, private equity firm Permira has fully exited its stake in TeamViewer, the remote access software company, after a successful ten-year investment. The sale of TeamViewer shares by Permira has generated over €5.7 billion in profits.
Before the recent share sales, Permira held a 7% stake in TeamViewer. The placement, representing around seven percent of the company's share capital, was made overnight to institutional investors, fetching €9.20 per share, 5.6% below Wednesday's Xetra closing price of €9.75.
The last 12.46 million TeamViewer shares were placed with institutional investors, resulting in a total of €115 million. Since Permira's initial investment in 2014 for €870 million, the firm's equity in TeamViewer has multiplied over tenfold.
Under Permira's management, TeamViewer underwent a significant transformation. The business model, previously a software license-based company, was shifted to a subscription model. The company also focused on larger corporate clients and aided its internationalization, making it one of Permira's most successful transactions globally.
These strategic changes paid off, as TeamViewer's revenue increased sixfold since Permira's investment. Today, the US is the largest market for TeamViewer, accounting for 40% of its revenue, a significant increase from an unspecified previous percentage.
The company also benefited from the COVID-19 pandemic, as many companies used its remote access software to facilitate remote work. However, on Thursday, TeamViewer's stock came under pressure, losing over four percent to 9.32 euros.
Despite the recent dip in TeamViewer's stock price, Permira's exit from the company marks a successful chapter in its investment history. The firm has been credited with professionalizing TeamViewer and helping it navigate its growth trajectory. The specific institutional investors involved in the recent sell-off of TeamViewer shares originally acquired by Permira in 2014 have not been explicitly named in the available sources.
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