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Carlyle Group Edging Near $2B Acquisition of AutoForm Engineering

The Washington, D.C-based private equity firm is reportedly in talks of buying the Swiss car software producer from a rival.

The next big move made by Carlyle Group (CG) - Get Carlyle Group L.P. Report could be a $2 billion acquisition of Switzerland's AutoForm Engineering.

The Washington, D.C.-based private equity firm is in the process of working out a sale from French equity rival Astorg for 1.75 billion euros or roughly $2 billion, The Wall Street Journal reported Tuesday. 

Based in Switzerland's Freienbach, AutoForm makes the technology necessary to design the sheet metal parts commonly used in cars as well as simulate the process of joining a car with its frame. Tesla (TSLA) - Get Tesla Inc Report, General Motors (GM) - Get General Motors Company (GM) Report and Volkswagen (VOW3)  are among the approximately 1,000 automakers that use AutoForm software to minimize carbon dioxide emissions and improve their cars' fuel efficiency. The software is accessed through a cloud that automakers access on a per-use basis.

With over $293 billion in assets, Carlyle has recently made a push toward investing in efficiency-maximizing software. Its acquisition of CSS AG, a German company that produces the software for corporate accounting and human resources departments, was completed earlier this month. In total, it has invested over $31 billion into technology.

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Astorg acquired AutoForm back in 2016 for 700 million Swiss francs, or roughly $721 million. At the time, its worth was estimated to be around 19 times Autoform’s expected earnings before Ebitda. Astorg currently oversees 13 billion euros, or $14.74 billion, in assets.

The deal between Carlyle Group and Astorg is expected to be formally announced later this week.  (CG) - Get Carlyle Group L.P. Report stock rose by 14% this week but, on Tuesday morning it was unchanged at $59.23 at last check.