Providence wins $1.3bn auction for French software firm A2Mac

Providence Equity Partners has entered exclusive talks to buy French automotive data firm A2Mac1 for about $1.3bn, clinching one of Europe’s rare private equity buyouts in a tough financing market, two sources told Reuters.

Providence signed an exclusive agreement with A2Mac1’s owner Five Arrows Principal Investments last night, trumping rival bids from buyout funds EQT and TA Associates, the sources said.

Five Arrows, advised by Harris Williams and Jefferies, will retain a minority stake in the business, the sources said.

Five Arrows, Providence, EQT and TA Associates declined to comment.

Providence’s swoop on A2Mac1 comes as global M&A shrank for the third consecutive quarter this year as rising interest rates have forced lenders to pull back from financing large deals.

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Providence, whose portfolio includes Colorado-based technology firm KPA – which provides compliance systems to auto dealers – preempted the A2Mac1 auction after bidders submitted non-binding offers on Sept. 29 as competition to secure recession-proof assets in the technology industry is fierce, the sources said.

The Rhode Island-based buyout firm focuses on media, communications, education and technology investments across North America and Europe and manages funds with $32 billion in aggregate capital commitments.

Founded in the mid-1990s, A2Mac1 is based in Boulogne-Billancourt, near Paris, just a short walk away from Renault’s headquarters.

It provides vehicle data and analysis tools as well benchmarking services to the car industry with a client base mostly focused on original equipment manufacturers (OEMs) and Tier 1-2 suppliers.

Source: Reuters

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