Hg hires Goldman Sachs to prepare sale of Germanys Transporeon – sources

div classBodysc17zpet90 cdBBJodivpBy EmmaVictoria Farrp

LONDON Reuters – European buyout fund Hg is working with Goldman Sachs to prepare the sale of Germanys Transporeon as it seeks to fetch about 2 billion for the transport logistics software firm, three sources familiar with the matter told Reuters.pdivdivdiv classBodysc17zpet90 cdBBJodiv

Hg bought the cloudbased logistics technology specialist in 2019 from rival buyout fund TPG and has seen the firm grow rapidly since, as supply chains were challenged during the pandemic, requiring digital software solutions.

Transporeon is expected to be sold as part of an auction process that will kick off after the summer, the sources said, speaking on condition of anonymity.

EQT, Silver Lake and Warburg Pincus are among possible bidders for the business, two of the sources said.

Hg, Goldman Sachs, EQT and Silver Lake declined to comment. Warburg Pincus did not immediately respond to requests for comment.

Reuters reported on Feb. 11 that buyout funds including KKR, Hellman & Friedman and Blackstone had expressed preliminary interest in the asset, with Permira, Cinven and Astorg also tipped to take part.

Germany – which has the largest logistics market in Europe and ranks as the worlds third largest exporter and importer of goods, based on data from Germany Trade & Invest GTAI – has seen a proliferation of freight software providers raising funds, including Sennder and Forto.

Transporeon generates around 120 million euros 130 million in sales, with core earnings around 35 million euros.

The company, led by Chief Executive Stephan Sieber, expects its 2021 revenues to increase beyond the 12.7 growth rate disclosed in public filings in 2020.

Transporeon has more than 1,000 employees and uses cloudbased software to plan logistics and transport management, reducing empty truck volumes and carbon dioxide consumption.

1 0.9204 eurosp

Reporting by EmmaVictoria Farr Editing by Pamela Barbaglia and Mark Potterp

divdivdiv classBodysc17zpet90 cdBBJodivdivdiv