Partners Group to buy into manufacturing software provider Forterro at €1bn valuation

Partners Group has agreed to buy Battery Ventures-owned pan-European software services provider Forterro at a €1bn valuation.

Founded in 2012, Forterro provides SMEs with softwares that offer functionality and serve various manufacturing processes. It has a portfolio of 11 software brands, serving over 10,000 customers primarily in the manufacturing space.

The firm said the SMB ERP software market had benefited from long-term digitization trends and is expected to experience attractive growth in the coming years. The new investment will support the company’s new expansion in Europe.

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Bilge Ogut, partner and head private equity technology at Partners Group, says, “Forterro provides mission-critical software that helps SMB manufacturers adapt and survive in an increasingly digitized world. We believe Forterro has transformational growth potential given the increasing importance of software to companies for addressing every aspect of their business and remaining competitive.

“Forterro is a long-term partner to its clients and can serve them in a way many larger providers cannot replicate. We were also attracted to the Company’s ability to act as a consolidator in the fragmented SMB ERP market. We are excited about the value creation opportunity Forterro offers and look forward to working with the management team to realize the Company’s potential.”

Partners Group has $127bn in assets under management as of December 31.

It raised $6bn for the final close of its fourth flagship direct equity fund last September, and another $9bn through related private markets programmes and bespoke client solutions that will invest alongside the fund.

Recent deals from the firm include exiting Taco Bell US franchisee Pacific Bells to special situations investor Orangewood Partners in November and teaming with New York-based investment firm Kohlberg & Co to jointly acquire real estate restoration service provider BluSky Restoration Contractors in October.

Source: Alt Assets

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