Hellman, TPG lead $1.3bn take-private

The two private equity firms today announced an agreement to buy ‘spatial-information’ software company Intergraph in a $1.3bn going-private transaction. Intergraph’s CEO is seeking ‘greater flexibility’ as a private company.

Private equity firms Hellman & Friedman and Texas Pacific Group have agreed to lead the acquisition of Intergraph, a maker of ‘spatial information management’ software, in a transaction valued at roughly $1.3 billion (€1 billion).

Intergraph is currently traded on the Nasdaq. Its share price had risen steadily for the past five years but took a tumble last January when it lost approximately 30 percent of its value.

Joining the two private equity giants on the deal is San Diego-based JMI Equity, a private equity firm focused on software and business services deals.

The private equity group is offering Intergraph shareholders a 22 percent premium over the average closing price of the last 20 trading days.

In a statement, Intergraph president and chief executive R. Halsey Wise said: “[W]e now expect to have even greater flexibility to invest in our customers, technology, people and future.

Intergraph’s software is used by energy, chemical and shipbuilding companies, among others. The products convert spatial information into visual representations.

Managing director David Tunnell led the deal for Hellman Friedman. Both Texas Pacific and Hellman & Friedman are based in San Francisco. The two firms have co-invested in the past, including on the Linsco/Private Ledger deal and on Texas Genco.