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The US private equity firm TPG is close to finalizing a €7bn acquisition of the German metering company Techem, a move that would mark one of the largest transactions between buyout firms in Europe this year.
According to sources, TPG could reach an agreement to purchase Techem from Switzerland’s Partners Group for up to €7bn as early as Monday. However, they noted that the timeline may still change and no conclusive decision has been made.
Founded in 1952, Techem operates around 60 million devices globally, providing users with insights into their energy and water consumption. The company has nearly 4,300 employees and generates over €1bn in annual sales, as indicated on its website.
This company is situated in a sector gaining traction among investors due to the ongoing energy transition and shifts toward more sustainable energy consumption. Over the past year, private equity group KKR acquired the UK’s Smart Metering Systems in a £1.4bn deal.
Amidst a broader slowdown in IPOs and acquisitions, private equity firms are under increasing pressure to return funds to their investors.
Reports suggest that the Singaporean sovereign wealth fund GIC will partner with TPG on this deal. TPG will invest through its TPG Rise Climate fund, which focuses on sustainability-driven projects.
A sale of Techem from Partners Group to TPG would stand as one of the largest transactions between private equity firms in Europe this year. The volume of deals has been affected by market instability and high interest rates.
Additionally, TPG is in discussions to acquire a stake in Vinted, Europe’s leading second-hand fashion platform, which is valued at €5bn, as previously reported by the Financial Times.
In 2018, Partners Group led a consortium to buy Techem for €4.6bn, following its delisting by Macquarie just before the financial crisis.
As of the end of June, Partners Group managed $149bn in assets, while TPG oversees $229bn.
Representatives from Partners Group, TPG, and GIC declined to comment.