Texas-based alternative asset manager TPG and global investment group CDPQ have agreed to acquire Aareon, a European SaaS provider for the property industry valued at €3.9bn, from international property specialist Aareal Bank and US private equity firm Advent International.
Aareal Bank’s equity stake in Aareon is valued at approximately € 2.1bn. The transaction is expected to close in H2 2024, subject to customary closing conditions and approvals.
TPG will invest in Aareon through TPG Capital, the firm’s US and European private equity platform, with CDPQ, whose co-investment will see it take a minority interest.
Advent will invest new equity for a minority interest in Aaeron, while Aareal Bank and Aareon will continue to support their respective clients through their joint venture, First Financial Software, which provides payment software solutions for the property sector.
In a statement, Jeff Paduch, a managing partner at Advent and a supervisory board member at Aareon, described the deal as “culminating in one of the largest software buyouts in Europe in 2024”.
Aareon is headquartered in Mainz, Germany, and provides automated end-to-end processes between property managers and owners across the residential and commercial real estate sectors.
CDPQ was advised by Freshfields Bruckhaus Deringer.
