TPG Capital Asia to Buy Infomedia for $421 Million

The Sydney-based software provider Infomedia on Wednesday said that global asset manager TPG has agreed to acquire all the shares of the company through McQueen BidCo Pty Ltd, an entity ultimately owned by funds managed or advised by TPG Capital Asia (TPG) or its related entities, to acquire all the issued capital of Infomedia in a $421 million all-cash deal.

TPG is a leading global alternative asset management firm with $258 billion of assets under management (AUM). The offer is said to be similar to a bid made for the company by the US-based firms three years ago.

According to Australian Securities Exchange (ASX), both companies have entered into a scheme implementation agreement, which would see Infomedia shareholders receive $1.12 per share in cash, representing a 41% premium to its three-month volume-weighted average price. Infomedia shares last closed at $0.86 per share.

The cash consideration represents an implied equity value of $421 million and an enterprise value of $370.35 million. The deal is subject to a number of conditions, including approval by the Australian Foreign Investment Review Board, Infomedia shareholders’ meeting to be held in November, an independent expert concluding that the deal is in the best interests of Infomedia shareholders.

TPG said that it was well positioned to accelerate Infomedia’s international expansion across the Asia Pacific region, EMEA and the Americas.

Infomedia’s SaaS solutions is serving BMW and Audi, enable digital transformation in vehicle management and diagnostics.

According to media reports, the global Automotive SaaS Cloud Service Market, valued at $8.38 billion in 2023, is projected to grow at a compound annual growth rate (CAGR) of 17.2% to reach $21.71 billion by 2030.

This surge is driven by the automotive industry’s urgent need for digital transformation, particularly in connected vehicles, fleet management, and over-the-air (OTA) updates. SaaS platforms like Infomedia’s provide automakers and service providers with tools to optimize operations, reduce costs, and enhance customer experiences, the reports said. 

Set for Global Expansion

Joel Thickins, co-head of TPG Asia and head of TPG Australia and New Zealand, said that Infomedia has grown to become a market-leading software provider to the highly resilient and growing auto parts and servicing end-market.

“Together with its experienced management team, the company has continued to innovate and improve its software solutions, with significant opportunities for further international expansion,” he added.

Infomedia Chairman, Jim Hassell said that the Board has unanimously recommended this transaction to Infomedia shareholders. The all-cash offer represents a compelling premium of 41% to Infomedia’s 3-month Volume Weighted Average Price (VWAP) and delivers certainty of value in an increasingly uncertain environment.

He also said that the Board considered that the proposal appropriately which reflected the strength of Infomedia’s platform, the execution of its strategy to date, and the growth opportunities it has created.

“While we remain confident in the long-term outlook for the business, the Scheme enables shareholders to realise full and fair value now, without the risks and uncertainties associated with continued execution as a standalone listed company,” he added.