MANAMA: Investcorp, a Bahrain-based alternative investment firm, yesterday announced its technology unit has acquired German human resources software provider Softgarden for an undisclosed amount.
The investment by Investcorp Technology Partners is the fourth deal from Investcorp’s fourth technology fund.
Investcorp bought Softgarden from a shareholder group including Cipio Partners, Brandenburg Kapital, Neuhaus and the company’s founders Stefan Schüffler and Dominik Faber.
Softgarden is EBITDA positive and has been able to grow rapidly (2015-2018 CAGR of +35 per cent) as companies increasingly seek specialised technology solutions to help them attract new employees in highly-competitive labour markets.
Investcorp will invest further capital into the business to drive expansion in the company’s core markets of Germany, Austria and Switzerland.
Commenting on the investment, Gilbert Kamieniecky, managing director focused on Investcorp’s technology investments in Europe, said: “Softgarden presents an attractive opportunity in the German-speaking region and a compelling end-to-end recruitment platform backed by a strong management team. With our deep history of working with fast-growing, data-centric businesses, this investment is an excellent fit with our broader portfolio.”
Founded in 2005, Softgarden offers a recruitment technology platform to German midmarket and enterprise customers.
Its Applicant Tracking System is a fully automated and data-privacy compliant SaaS platform covering the entire digital corporate recruitment process.
Softgarden also offers a proprietary jobseeker market place with over 65,000 candidate profiles, as well as a tool allowing for the automated posting of job adverts on more than 300 job boards.
Softgarden chief executive Mathias Heese said Investcorp’s expertise in backing technology and software businesses “combined with their deep understanding of our business, will help drive the company’s future growth and innovation”.
Mr Schüffler said he is committed to remaining involved in Softgarden’s future development.
Germany represents a core market for Investcorp with the firm having already made three investments in the country this year.
Investcorp has established a market leading position of investing in lower mid-market technology companies with a particular focus on data analytics, IT security and fintech/payments and has raised over $1 billion in funding for technology investments.
Investcorp Technology Partners was advised by Covington, Deloitte, PwC and Code and Company and the sellers were advised by Stella EOC and CMS.