22 December 2004
Bain Capital acquires TeamSystem SpA from Palamon Capital Partners

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TeamSystem S.p.A., a leading company in the development and marketing of financial management software products for tax, payroll, accounting, budgeting and Enterprise Resource Planning, today announced that it has been acquired by the existing management team and Bain Capital, a leading global private investment firm. TeamSystem was purchased from Palamon Capital Partners. Principal terms of the transaction were not disclosed. Based in Pesaro, Italy, TeamSystem primarily serves small and medium-sized businesses and professionals (accountants and labour consultants). The group employs more than 450 people, and enjoys a customer base in excess of 43,000 who are served through 12 subsidiaries in Italy as well as a network of approximately 300 selected and skilled software partners throughout Italy. “We are very pleased to acquire such a clear market leader in the financial and management software arena,” stated Ferdinando Grimaldi, a Managing Director at Bain Capital. “Strong demand for TeamSystem’s broad suite of existing products and services, together with promising new offerings, should continue to drive customer satisfaction and growth. We look forward to working with this talented management team to help the company realize its potential through organic growth and strategic acquisitions." TeamSystem will be operated by the existing management team under the leadership of the CEO, Gianandrea De Bernardis. Management will retain a significant equity stake in the group. “We are excited by the opportunity to partner with an accomplished global technology investor such as Bain Capital,” stated De Bernardis. “This transaction is consistent with TeamSystem’s strategy of growth through a combination of organic increase in our customer base and external acquisitions. TeamSystem will benefit from access to Bain Capital’s extensive network and financial resources. This will allow us to find new ways to serve our customers while increasing our market share in a highly fragmented sector.” Stefano Bacci, Partner at Palamon commented: “Since we acquired our stake in TeamSystem in June 2000, company’s revenues and pre-tax profit have grown by 2.5 times. This success stemmed from Palamon’s recruitment of an outstanding professional management team and the implementation of a strategy to expand TeamSystem’s direct and indirect sales channels, as well as the introduction of new products. This has been a model investment for Palamon from developing the investment thesis and constructing the transaction in partnership with the company’s founders. We are very proud of the accomplishments of TeamSystem’s executive team and are honoured to have been their partners for over four exciting years.” Financing for the transaction is being provided by The Royal Bank of Scotland and Intermediate Capital Group. Legal advice for Bain Capital was provided by Gianni Origoni Grippo and Kirkland & Ellis, and accounting and tax advice by PWC. The Royal Bank of Scotland and Intermediate Capital Group have been advised by Ashurst. HSBC acted as financial adviser to Palamon Capital Partners. Dewey Ballantine acted as legal adviser and PWC as tax adviser. With today's disposal of its 67% stake in TeamSystem, Palamon has generated an IRR in excess of 50% on its investment.

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