Providence wins $1.3 billion auction for French software firm A2Mac1 – sources

Providence signed an exclusive agreement with A2Mac1’s owner Five Arrows Principal Investments (FAPI) last night, trumping rival bids from buyout funds EQT and TA Associates, the sources said.

Five Arrows (FAPI), advised by Jefferies and Harris Williams, will retain a minority stake in the business, they said.

FAPI, Providence, EQT and TA Associates declined to comment.

A2Mac1 provides vehicle data and analysis tools to original equipment manufacturers (OEMs) while also specialising in benchmarking solutions for the car industry.

The deal values the company at a multiple of almost 30 times its core earnings of 50 million euros ($49 million), one of the sources said.

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Five Arrows Principal Investments (FAPI) is owned by Rothschild and manages 2.8 billion euros ($2.85 billion) of capital focused on mid-market investments in Western Europe. It bought A2Mac1 in 2017 for more than 200 million euros.