...- In November 2021, private equity firm Carlyle agreed to acquire Switzerland-based sheet metal forming and assembly simulation software provider AutoForm. The transaction will be partly funded by 472 million senior secured term loan, undrawn 55 million RCF and 184 million payment-in-kind (PIK) facility. - AutoForm focuses on the simulation software specifically for auto industry, and has a small size with revenue of about 110 million in 2021, high customer concentration, and unhedged foreign exchange (FX) risks. Following the transaction, AutoForm will have a highly leveraged capital structure, with S&P Global Ratings-adjusted debt to EBITDA of about 10x (7x excluding the PIK facility). - However, this is offset by AutoForm's dominant market position, with over 20 years of relationships with global top auto original equipment manufacturers (OEMs), almost 100% subscription-based revenue, very low churn rate of about 2% and zero for OEMs, high barriers to entry, limited competition, sound...
