Permira-Backed TeamViewer CEO Favors Possible German Tech IPO

(Bloomberg) -- The chief executive officer of fast-growing software company TeamViewer GmbH would back a share sale if its owner Permira Holdings LLP pursued one, in what would be the biggest German tech IPO in at least five years.

Based in Goeppingen in southern Germany, TeamViewer would be ready for a possible listing at the end of this year or next year if the involved parties decided the timing was right, CEO Oliver Steil said in an interview.

“We clearly believe an IPO is a very good option for the business,” Steil, a former Permira executive, said by phone. “But in the end, it’s a shareholder decision.”

Permira could sell between 30% and 40% of the company, and is seeking a valuation of 4 billion euros ($4.4 billion) to 5 billion euros, according to a person familiar with the matter. Steil and Permira declined to comment on the valuation.

Permira bought TeamViewer -- which develops software for collaboration and remote desktop access -- for 870 million euros in 2014. It’s since partnered with firms including Alibaba Group Holding Ltd. and Salesforce.com Inc. to bolster its cloud offerings, and introduced new products to better serve companies trying to digitize their factories and business processes.

The strategy seems to be paying off. TeamViewer’s cash billings grew more than 35% in the first half, faster than last year’s 25% growth, to over 140 million euros, the CEO said. The company posted a cash operating profit margin of more than 50% during the period. It says its software has been installed on more than 2 billion devices.

The German company may hire more people in the U.S. and opened offices in China, Japan, India and Singapore last year to expand sales in those markets. In China alone, TeamViewer has “tens of millions” of free users, more of whom the company wants to convert into paying customers, Steil said.

--With assistance from Sarah Syed and Amy Thomson.

To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net

To contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Nate Lanxon

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