(Bloomberg) -- Aareal Bank AG and its majority owner Advent International agreed to sell the bank’s software unit, prompting the German regional lender to raise its guidance for this year.

Private equity firm TPG and Canadian pension fund Caisse de Depot et Placement du Quebec will acquire the unit at an enterprise value of about €3.9 billion ($4.2 billion), Aareal said in a statement on Monday. That values the bank’s equity stake in the unit, called Aareon, at about €2.1 billion.

Bloomberg reported earlier this month that TPG was among bidders for the software business. Advent aquired a 30% stake in Aareon in 2020, in a deal that put an equity value of about €860 million on the unit at the time. The remaining shares are still owned by Aareal Bank, which is itself controlled by Advent, Centerbridge Partners and the Canada Pension Plan Investment Board.

The sale announced Monday will lead to a gain of about €2 billion for Aareal upon closing, which is expected in the second half of this year. The bank will book “transaction-related costs” of about €150 million, most of that in the second quarter, it said in the statement.

Aareon, based in Mainz, Germany, makes software for the property industry, including for payments, contracts and facilities management.

Aareal’s banking business excluding Aareon is “well on track” to achieving its operating target of €250 million to €300 million this year, it said. 

(Updates with details throughout.)

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