Permira Agrees to Buy German Payroll Provider P&I From HgCapital

  • Deal for P&I said to be valued at more than $900 million
  • Sale represents a 36% internal rate of return for HgCapital

Permira, the global buyout fund, agreed to buy the majority of German payroll software provider Personal & Informatik AG in a deal expected to close next month.

The company’s current owner, HgCapital, will continue to hold a minority stake in the business, Permira said in a statement Monday. The transaction is valued at more than $900 million, according to people familiar with the matter who asked not to be identified because the details are private.

Permira is bulking up in technology investments. The firm partnered with Canada Pension Plan Investment Board to buy U.S. software company Informatica Corp. for about $5.3 billion last year. Permira also owns TeamViewer GmbH, a German company that provides remote support software.

For HgCapital, which bought P&I in 2013, the sale represents its first exit from its seventh investment fund and a 36 percent internal rate of return. The firm will retain a minority stake of 70 million euros ($78 million) in P&I, the company said in a separate statement.

HgCapital was advised by Arma Partners LLP and GCA Altium.
Wiesbaden, Germany-based P&I supplies payroll and human resources software products to more than 15,000 business and public sector customers across Europe.