(Bloomberg) -- Thoma Bravo agreed to acquire a majority stake in technology services firm USU Product, marking the buyout firm’s second investment in a German-speaking region within a year.
USU Product, which is a subsidiary of USU Software AG, will continue to operate under its existing management team, according to a statement on Tuesday, confirming an earlier Bloomberg News report. USU Software will keep a minority holding of about 25% after the deal, which values the technology services unit at about €200 million ($223 million) to €300 million, people familiar with the matter have said.
USU Software was taken private earlier this year by the company’s founding shareholder, Udo Strehl, who is chairman of its supervisory board. His son Benjamin Strehl is currently co-chief executive officer of USU Software and will become CEO of USU Product. Bernhard Oberschmidt, the CEO of USU Software, will join the board of directors.
USU Product provides IT management solutions catering to governments and municipalities, as well as German small- and medium-sized enterprises.
The transaction is part of Thoma Bravo’s strategy on expanding into the German market with a focus on investing in innovative software companies across Europe. The buyout firm acquired corporate communications and compliance services firm EQS Group AG for about €400 million earlier this year.
“We see Germany as a significant growth market with strong technology and are excited to support this ecosystem with another investment,” Irina Hemmers, a partner at Thoma Bravo, said in the statement. “Thoma Bravo’s investment in USU Product aligns with our broader strategy of working with market-leading software companies to drive transformative growth.”
(Updates throughout with official confirmation.)
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