Aareal, Advent to Sell Property Tech Unit Aareon to TPG, CDPQ in $4.2 Billion Deal

Dow Jones06-24

By Adam Whittaker

Aareal Bank and Advent International agreed to sell property-software unit Aareon to TPG and CDPQ in a deal that values the business, including debt, at billion euros ($4.17 billion).

The agreement will see private-equity firm TPG invest in Aareon alongside Canadian pension fund Caisse de depot et placement du Quebec the companies said Monday. CDPQ will be a minority partner and private-equity firm Advent will continue its involvement in Aareon with the investment of new equity for a minority interest.

Germany's Aareal Bank said it expects to book a gain of around EUR2 billion from the sale, which values its stake in Aareon at about EUR2.1 billion. The gain hasn't been considered in previous guidance for 2024, which will be raised, Aareal said.

The majority of the EUR150 million transaction-related costs have to be recognized in the second quarter, coinciding with the signing of the transaction, the lender said.

Aareon is headquartered in Mainz, Germany and provides software services that connect managers and owners in the property industry. Aareal had a 59.9% stake in Aareon, with Advent holding 30%, and the business generated EUR344 million in revenue last year, according to Aareal's latest annual report.

TPG will provide Aareon access to additional resources and expertise to drive innovation and further growth, the companies said.

The deal is expected to be concluded in the second half of 2024, subject to customary closing conditions and approvals, the companies said.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

June 24, 2024 07:14 ET (11:14 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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