Sage Group Seen As Frontrunner For Bain's TeamSystem -Sources

28th Jul 2010 17:15

By Marietta Cauchi and Jessica Hodgson Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.K. software firm Sage Group PLC (SGE.LN) is the frontrunner in the auction for TeamSystem SpA, the Italian software company being sold by U.S. private equity firm Bain Capital LLC, people familiar with the company said Wednesday. Sage had dropped out of the sale several weeks ago, but was invited back in after UBS AG (UBS), Bain's adviser, narrowed the price range, one person told Dow Jones Newswires. Buyout firms Cinven Group and HgCapital remain in the process but are taking a backseat, people said. Final bids are due Friday, although one person said the process could be extended beyond that point. Bain is looking to get around EUR600 million from the sale. It purchased TeamSystem in December 2004 for EUR274 million from Palamon Capital Partners. A representative for Sage declined to comment. Sage, which competes against giants like SAP AG (SAP) and Oracle Corp. (ORCL), recently said long-term CEO Paul Walker would be replaced by Guy Berruyer, who currently runs the company's European and Asian business. Cinven and HgCapital both have a track record of working with technology companies. Several buyout firms were initially looking at TeamSystem but decided not to submit offers for the business earlier in the process, people familiar with the matter said earlier. These included Advent International, Apax Partners, Bridgepoint and CVC Capital Partners Ltd. -By Marietta Cauchi and Jessica Hodgson, Dow Jones Newswires; +44 207 842 9241; [email protected] (END) Dow Jones Newswires July 28, 2010 12:15 ET (16:15 GMT)