Hg Said to Mull Stake Sale in €4 Billion French Tech Firm Septeo

Dinesh Nair, Vinicy Chan and Pamela Barbaglia, Bloomberg News

A person typing at a backlit computer keyboard arranged in Danbury, U.K., on Tuesday, Dec. 29, 2020. In the spring, hackers managed to insert malicious code into a software product from an IT provider called SolarWinds Corp., whose client list includes 300,000 institutions. Photographer: Chris Ratcliffe/Bloomberg , Bloomberg

(Bloomberg) -- Private equity firm Hg is considering options for French software company Septeo including a minority stake sale that may value the business at as much as €4 billion ($4.3 billion), according to people familiar with the matter.

Hg has been speaking to potential advisers as it prepares to gauge interest from potential investors, the people said, asking not to be identified because the information is private. Septeo may attract bids from other private equity funds and a formal process may start later this year, according to the people.

Deliberations are at an early stage and Hg may still decide against a deal, they added. A representaive for Hg declined to comment.

Based in the southern French town of Montpellier, Septeo provides legal software for clients including law firms and human resources departments, according to its website. The company has more than 3,000 employees in France, Spain, Belgium, Switzerland, Tunisia and North America. Hg invested in the company in 2020.

Buyout funds are stepping up exits of portfolio companies as dealmaking conditions begin to improve after a prolonged downturn. They are also under pressure to meet the increasing investor demand to return capital.

TA Associates has been looking to sell French software firm Orisha with indicative bids due in the coming days, Bloomberg News reported on Wednesday. Aareal Bank AG and its majority owner Advent International this week agreed to sell the lender’s software unit at an enterprise value of €3.9 billion.

--With assistance from Swetha Gopinath.