Buyout Firms Circle Bain Capital's TeamSystem -Sources

21st Jun 2010 12:07

By Marietta Cauchi Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Several private equity firms are likely to bid for TeamSystem SpA, the Italian software company put on the block by Bain Capital, in yet another example of the popularity of payment processing companies, people familiar with the situation told Dow Jones Newswires Monday. Bain, which bought TeamSystem for EUR274 million from Palamon Partners in Dec. 2004, has hired UBS AG (UBS) to run the process and information memorandums were sent out to interested parties in the last week or so. There is no formal date for bids as yet. Buyout firms including Advent International and Bridgepoint are taking a look at the business, which makes and sells financial management software. Others potential bidders include Providence Equity Partners, Apax Partners and CVC Capital Partners. Payment processing companies worldwide have attracted frenzied merger and acquisition activity so far this year as buyout firms have swooped on the businesses attracted by their steady cash streams, which make debt financing easier to come by. Royal Bank of Scotland Group PLC's (RBS) Global Merchant Services unit, which is expected to fetch up to GBP2.5 billion and attracted over 20 bidders in the early stages of an auction process, is now being fought over by two private equity groups. Meanwhile, some four buyout firms are in the second round of the auction for Dubai's Network International. TeamSystem is also likely to attract trade buyers interested in boosting their own offerings. Larger rival Sage Group PLC (SGE.LN) is a possible bidder. Bain is looking to get EUR600 million on the sale, according to a recent press report. -By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; [email protected] (Jessica Hodgson contributed to this story.) (END) Dow Jones Newswires June 21, 2010 07:07 ET (11:07 GMT)