TPG Capital, L.P. and Caisse de dépôt et placement du Québec entered into an agreement to acquire Aareon AG from Aareal Bank AG (HMSE:ARLN) and Advent International, L.P. for an enterprise value of approximately ?3.9 billion on June 24, 2024. The financial terms of the sale are based on an enterprise value for Aareon of approximately ?3.9 billion, valuing Aareal Bank?s equity stake in Aareon at approximately ?2.1 billion. TPG will invest in Aareon through TPG Capital, the firm?s U.S. and European private equity platform, in consortium with CDPQ, a global investment group, who will co-invest alongside TPG for a minority interest in Aareon. Advent will continue its involvement in Aareon with the investment of new equity for a minority interest in the standalone company. Following the transaction, Aareal Bank and Aareon will continue to seamlessly cooperate to support their clients through their joint venture First Financial Software. Aareon will be reported as a discontinued operation according to IFRS 5 starting in the second quarter until closing.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to take place in the second half of 2024.

Arma Partners acted as lead financial advisor and Goldman Sachs acted as financial advisor to Advent International and Aareal. CMS served as legal counsel for Aareal while Weil, Gotshal & Manges LLP provided legal advice to Advent International. Morgan Stanley & Co. International Plc acted as financial advisor and Philip Goj, Sebastian Häfele, Fabrice Hipp, and Michael Ehret of Kirkland & Ellis, Germany and Adrian Maguire, Vincent Bergin, Andrew McAlpine, Jessica Corr, Daniel Borg, Leon Daoud, Natasha Smith, Frixos Hatjantonas, Mavnick Nerwal, Jacqueline Clover, Matthew Sinclair-Thomson, Shahrzad Sadjadi, Julia Dixon and Emma Reid of Kirkland & Ellis International LLP served as legal advisors to TPG and CDPQ. Evercore Inc. (NYSE:EVR) acted as financial advisor to TPG Capital, L.P. Janina Heinz of Freshfields Bruckhaus Deringer Rechtsanwälte Steuerberater PartG mbB, Helen Buchanan of Freshfields Bruckhaus Deringer LLP, London, Merit Olthoff of Freshfields Bruckhaus Deringer LLP, Belgium and Laurent Bougard of Freshfields Bruckhaus Deringer LLP, Hong Kong acted as legal advisor to Caisse de dépôt et placement du Québec.