(Bloomberg) -- TA Associates and LEA Partners are considering a potential sale of Chaos Group, a maker of 3D video-rendering software that could be valued as much as €1 billion ($1.1 billion), according to people familiar with the matter.

The private equity firms are working with advisers and asked suitors including tech-focused buyout firms to submit non-binding bids earlier this month, the people said, asking not to be identified because the information is private.

Founded in 1997, Chaos offers a platform for 3D rendering, real-time visualization and simulation software. Its flagship rendering solution, V-Ray, is used in product design, architecture, ad campaigns and for visual effects in film and television.

Potential buyers could be turned off by worries over how the rise of generative AI will affect Chaos’s business, potentially crimping its prospects for achieving a high valuation in a sale, some of the people said. Deliberations are ongoing, and there’s no certainty they will lead to a transaction. 

A representative for TA declined to comment, while LEA didn’t immediately respond to a request for comment. 

TA and LEA acquired Chaos in January 2022, when the firm was still headquartered in Sofia, Bulgaria, to merge it with German rival Enscape. The merged entity then acquired smaller rivals Cylindo and AXYZ design.

--With assistance from Swetha Gopinath.

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