Software group TeamViewer said it planned to list on the Frankfurt stock exchange before the end of 2019 in one of the largest initial public offerings for the German technology sector in recent years.

The offering is expected to value the company at €4bn to €5bn, a person familiar with the matter said. Private equity group Permira, which bought TeamViewer five years ago for €870m, is expected to sell 30-40 per cent of its stake.

The planned listing is a rare example of a German technology IPO focused on software rather than e-commerce. If the valuation is confirmed, TeamViewer would be the second-largest listed software company in Germany behind SAP.

Recent tech listings in Europe’s largest economy have been heavily centred on Berlin-based companies backed by Rocket Internet, such as takeaway group Delivery Hero and meal-kit provider HelloFresh. The latest German tech company to gain a stock market listing was Rocket-backed Global Fashion Group in July.

Based in the southern German city of Göppingen, TeamViewer develops and sells software that allows users to connect to online meetings and to access each other’s computers remotely, for example for IT support. Its software can also be used by medical professionals for remote consultations with patients.

According to TeamViewer, the company’s products have been activated on more than 2bn devices since the company was formed in 2005, and are currently in use on up to 45m devices concurrently around the world.

TeamViewer switched from a sales model to a subscription model last year, and now has more than 360,000 subscribers. According to its statement on Wednesday, the company recorded a 25 per cent increase in billings in 2018 to €230m. In the first half of 2019, billings rose 37 per cent to €142m compared with the same period the year before.

In a conference call with journalists, chief executive Oliver Steil said the company was active in a market estimated to be worth €10bn last year, and expected to grow to €30bn over the next four years.

With 800 employees in offices across Europe, the US and the Asia-Pacific region, TeamViewer was well-placed to capitalise on that increase, he said. “We are global, but not too global. There is still significant growth potential,” Mr Steil said.

Jörg Rockenhäuser, head of the Germany, Austria and Switzerland region at Permira, said: “The IPO will be a key milestone for TeamViewer . . . We remain strongly committed to the company as a major shareholder after the IPO since we see huge growth potential for TeamViewer.”

Goldman Sachs and Morgan Stanley are serving as joint global coordinators and joint bookrunners. Bank of America Merrill Lynch and Barclays are joint bookrunners, while RBC Capital Markets is co-lead manager. Lilja & Co is an independent adviser to Permira and TeamViewer.

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