WingArc raises $179m in Japan IPO, Carlyle makes full exit

WingArc1st sold approximately 12.2 million shares – all of them held by the private equity firm – for JPY1,590 apiece, according to a filing. The company’s stock opened at JPY2,005 on March 16 and then fell back to close at JPY1,980. Carlyle held a 40% stake in WingArc1st prior to the IPO and its full exit is predicated on the over-allotment option, of 1.59 million shares, being full exercised.

Headquartered in Tokyo, WingArc1st specializes in enterprise output management (EOM) and business intelligence (BI) software. Through products such as SVF, Dr. Sum, and MotionBoard, it helps companies make effective use of their internal data by providing, installing, and maintaining software solutions.

Carlyle acquired 100% of WingArc1st in 2016 through its third Japan fund, which has a corpus of JPY119.5 billion. The sellers were an Orix Corporation subsidiary and the incumbent CEO. Three years later, Itochu Corporation bought a 24.5% stake in the company. Over the next two years, Toshiba Digital Solutions and cloud-based services provider Sansan They entered into business partnerships and took equity interests, owning 13.1% and 6.81%, respectively, at time of IPO.

Carlyle claims to have worked closely with company management on setting and executing growth strategies. It helped strengthen the management structure and governance, streamline the business portfolio through divestments, and make investments and acquisitions to enhance the core business.

WingArc1st’s ability to maximize the value of data and provide its customers with innovative solutions, along with the acceleration of digitalization, further driven by COVID-19, has enabled WingArc1st to maintain its leadership position in EOM and BI software in Japan,” said Kazuhiro Yamada, head of Carlyle’s Japan advisory team, in a statement.

WingArc1st’s sales reached JPY18.1 billion in the 12 months ended February 2020, up JPY16.6 billion from the previous year. Over the same period, net income rose from JPY1.16 billion to JPY1.85 billion.

This represents Carlyle’s eighth exit via IPO in Japan. The private equity firm has made 27 investments in the country since 2000 and has delivered 17 exits in total.

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• Topics
• North Asia
• Technology
• IPO
• Japan
• enterprise software
• The Carlyle Group