French workplace rewards company Edenred has acquired London-headquartered employee engagement platform Reward Gateway for £1.15bn.
Reward Gateway has a variety of employee-focused software tools for HR departments including a discounts scheme, benefits scheme, reward scheme, internal communication and engagement analytics.
“As we will aim at a single unified platform, we will benefit from economies of scale to build tailored solutions for specific markets,” said Nick Burns, CEO of Reward Gateway.
“Bringing together our collective strengths, from commercial reach to product innovation and advanced technology, will be putting us in a position to provide HR leaders with a truly market-beating solution.”
Burns will continue to lead Reward Gateway post-acquisition. Edenred, which is listed on the Euronext stock exchange, has a market capitalisation in excess of €14.5bn (£12.6bn).
The deal will see Edenred expand Reward Gateway into Belgium, France, Germany, Italy, Romania and Spain.
The market consolidation comes amid cooling M&A activity following record highs in 2021.
Arnaud Erulin, COO of employee benefits solutions at Edenred, said: “This acquisition marks a major milestone in the roll-out of our strategic plan, putting Edenred in the best position to be the most trusted global employee benefits and engagement platform.”
“It opens the door for Edenred to accelerate the strengthening of its employee benefits value proposition.”
Reward Gateway is estimating revenue of £95m and EBITDA of £45m for the coming year. The deal is expected to be finalised in the next few days.
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