London-based Investcorp acquires acquires German payroll-as-a-service provider VEDA | EU-Startups
Investcorp Technology Partners (ITP), the global technology arm of Investcorp, has announced its acquisition of a majority stake in VEDA, a leading HR software and payroll-as-a-service provider based in Alsdorf, Germany. The deal marks ITP’s entry into the DACH region, with VEDA set to benefit from the firm’s expertise and support in expanding its product portfolio and cloud business.
VEDA specializes in providing comprehensive HR management solutions, including payroll, time and security, recruiting, personnel development, and learning management. With a customer base of approximately 1,200 companies, including major names like MAN and Lufthansa, VEDA generated revenues of about €20 million in 2023. The company aims to digitize HR tasks and streamline administrative processes for organizations ranging from 150 to 5,000 employees in size.
As VEDA’s first institutional investor, ITP plans to enhance the company’s go-to-market strategy and facilitate growth through add-on acquisitions of businesses offering complementary products and services. Operating in the vast and fragmented DACH HR and payroll markets, VEDA is well-positioned to capitalize on the collaboration with ITP and further extend its reach.
Georg Knoflach, Managing Director at ITP, expressed enthusiasm for the partnership, highlighting VEDA’s strong presence in the ca. €3 billion DACH HR and payroll software/services market for SMEs. Knoflach emphasized the potential for ITP to support VEDA in guiding more SMEs towards cloud-based HR services, underscoring the exceptional opportunities for growth in the sector.
Ralf Graessler, CEO of VEDA, echoed Knoflach’s optimism and appreciation for the partnership with ITP. Graessler noted ITP’s unparalleled knowledge of the market and sector, positioning them as the ideal partner for VEDA’s upcoming growth phase. With a focus on digitalization and further acquisitions, Graessler is confident that VEDA will thrive as it continues to deliver cutting-edge HR software solutions to businesses in the DACH region.
ITP’s investment in VEDA is part of its broader strategy of investing in lower mid-market technology companies, with particular emphasis on software, data/analytics, cybersecurity, and fintech. This move follows ITP’s previous investments in HWG Sababa (cybersecurity, Italy), Zift Solutions (PRM software, USA), and NetRom (software engineering, the Netherlands). It also aligns with ITP’s successful investment approach in the DACH region, highlighted by its exit from HR software company softgarden in 2022.
The VEDA acquisition is expected to be finalized in the first quarter of 2024, subject to customary closing conditions. With the combined expertise of Investcorp and VEDA, the partnership is set to accelerate the digitization of HR services and empower businesses to streamline their operations and unlock further growth potential.
In conclusion, Investcorp’s acquisition of VEDA represents a significant milestone for both companies, opening up new opportunities in the HR software and payroll-as-a-service market. As ITP leverages its global technology expertise and VEDA’s proven track record, businesses in the DACH region can look forward to more efficient and digitally enabled HR solutions.
