Home Stock & Shares TeamView Set For Rare German Software IPO In Huge $5 Billion Frankfurt Listing

TeamView Set For Rare German Software IPO In Huge $5 Billion Frankfurt Listing

by Paul
IPO

TeamView, the German tech company that develops online meetings and remote access software, has announced plans for a late 2019 IPO expected to value it at between $4 billion and $5 billion. If the IPO goes as planned it will see TeamView immediately installed as the second most valuable software company listed in Germany, second only to SAP. It would also represent one of the largest European economy’s biggest ever tech IPOs.

It’s also relatively rare for German software companies to make the move into the public domain with a large majority of tech listings some form of ecommerce or tech enabled service. Recent German tech listings have also been dominated by the stable of Rocket Internet, the Berlin-based tech investor, which defines its business model as a ‘venture builder’ or ‘start-up studio’. Recent IPOs of start-ups backed by Rocket Internet have included those of takeaway delivery app Delivery Hero and meal kit provider HelloFresh.

But TeamView is set to break that mold. The company is based in the southern German city of Göppingen, which has a population of less than 60,000. It’s probably best known as the home town of German striking legend Jürgen Klinsmann but is also the home of model train maker Märklin. Germany’s economy is relatively unique in the fact that many of its biggest companies are located in smaller towns and villages dotted around the country, rather than being concentrated in a small number of bigger cities. Though there is a trend for tech companies, especially those backed by Rocket Internet, to be based in Berlin.

Established in 2005, TeamView says its software products have now been activated on over 2 billion devices with up to 45 million devices concurrently using them actively at any one time. As well as its conferencing and remote access software products being used for remote professional meetings and IT support, they are also now being used by medical professionals for remote consultations.

Like many, if not most, software companies, TeamView has moved its products onto a SaaS (Software as a Service) subscription model, making the transition last year. It already has 360,000 SaaS accounts and subscription revenues were grown 37% compared to the year before over the first half of 2019 – taking them to €142 million.

In a call with journalists to taken as part of the announcement of its IPO plans, TeamView chief executive Oliver Steil put the value of the market TeamView’s SaaS products are in at €10 billion as of last year. Crucially, from the point of view of investors possibly considering the merits of the IPO, that market is estimated to see breakout growth to reach a value of €30 billion over the next four years. Mr Steil was also keen to point out that while TeamView is already a global company it is not yet ‘too global’ and plenty of scope still remains for increasing international market share.

TeamViewer has been owned by private equity group Permira for the last 5 years, following an €870 million acquisition. Permira is expected to retain 30%-40% ownership of the company following the IPO.

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