Indicative Investments
Software Services

TeamSystem SpA

Headquarters: Pesaro, Italy
Business: Software and services for SMEs

TeamSystem is Italy's leading provider of small business accounting, tax and payroll management software. At the time of Palamon's investment the founder-led company had established a strong market position in Italy's highly fragmented industry. Palamon recognised that by professionalising the management structure the business could access higher expansion potential, gain market share and become a significant national player. The rapid success of the business enabled Palamon to complete a dividend recapitalisation in 2003 whilst holding a majority position as the company accelerated growth. Under Palamon's ownership, revenue and profitability grew by more than 2.5 times with the company's personnel base expanding by 100%. In December 2004, TeamSystem was sold to Bain Capital generating a 4.1x return on invested capital and a 52% IRR.