Investcorp Technology Partners, a European unit of Investcorp, has reached an agreement to sell Berlin-based human resources software provider Softgarden to Poland's HR technology company Grupa Pracuj for €118 million ($122.9m).
The transaction, which is expected to complete in the coming months, will yield a return of more than three times the invested capital in less than four years, said Investcorp, the alternative asset manager that counts Mubadala Investment Company as its biggest shareholder.
“This investment is a great demonstration of how our strategy of working in partnership with founders and management teams comes alive — driving value, executing M&A [merger and acquisition] and internationalising the business model,” Georg Knoflach, managing director at Investcorp Technology Partners, said.
Softgarden offers recruitment software platform to various mid-market and enterprise customers across Europe. Its solutions enable customers to streamline and manage their entire digital recruitment process in an efficient, integrated and data-privacy-compliant manner.
Investcorp acquired Softgarden for an undisclosed amount in 2018. It purchased the company as part of its Investcorp Technology Partners Fund IV and worked closely with its founder, chief technology officer Stefan Schuffler and the management team to accelerate growth through international expansion.
The Bahrain-based asset manager oversaw development and revenue acceleration at the company, including the growth of its software revenue by more than 400 per cent and the strategic entry into new markets such as France, Spain and Poland.
“We could not have wished for a better partner than ITP [Investcorp Technology Partners]. The team has closely supported our growth and development where we most needed it and, most importantly, enabled us to deliver great results for our clients,” Mathias Heese, chief executive of Softgarden, said.
Established more than four decades ago, Investcorp has grown to become one of the leading alternative asset management companies in the region, investing across asset classes and geographies. The company went on an acquisition spree during the coronavirus pandemic to capitalise on lower asset valuations.
Investcorp, which has $40.4 billion in assets under management as of the end of 2021, including assets managed by third-parties, is looking to further diversify its investments by expanding its technology portfolio.
Since 2012, it has invested €1.6bn in companies across Europe. It bought a majority stake in Italian cybersecurity company HWG earlier in March through Investcorp Technology Partners.
Investcorp Technology Partners previously acquired German cybersecurity provider Avira in 2020, which was subsequently sold to NortonLifeLock, according to Investcorp.