Investcorp Technology Partners (ITP), the global technology arm of Investcorp, is set to acquire a majority stake in Germany-based VEDA GmbH, an HR software and payroll-as-a-service provider in the DACH region.
VEDA’s CEO, Ralf Graessler, will retain his investment in the company following the acquisition. The transaction is anticipated to conclude in Q1 2024. However, the terms of the deal have not been disclosed.
Georg Knoflach, MD at ITP says, “Investcorp Technology Partners is pleased to be investing in VEDA, a company that continues to have a leading position in the €3B DACH HR and payroll software/services market for SMEs.”
“We were impressed by the quality of VEDA’s products and go-to-market strategy, and we see incredible opportunities to support the Company as it helps more SMEs move their mission-critical HR services to the cloud.”
“We look forward to partnering with CEO Ralf Graessler and the entire VEDA team on this next phase for the Company,” adds Knoflach.
What does VEDA offer?
VEDA, headquartered in Alsdorf, Germany, is a digital HR management platform provider. The company’s solutions cover payroll, time and security, recruiting, personnel development, and learning management, aiming to streamline tasks and reduce administrative efforts.
The company has around 170 employees serving over 1,200 customers, including MAN and Lufthansa and claims to have generated €20M in revenue in 2023.
Capital utilisation
ITP, VEDA’s first institutional investor, plans to enhance the company’s go-to-market strategy, expand its product portfolio, and focus on the growing cloud business.
This investment will also facilitate VEDA’s growth through acquisitions in the DACH HR and payroll markets.
Ralf Graessler, CEO of VEDA says, “We are very proud to be bringing in ITP as VEDA’s first institutional investor. ITP’s knowledge of our sector and market are unparalleled and they are the perfect partner for us as we move into our next stage of growth, both in terms of digitalisation and through further acquisitions.”
“VEDA will continue to move from strength to strength under this new partnership as we bring exceptional HR software solutions and services to even more companies in the DACH region,” adds Graessler.
This is ITP’s fourth investment from its global fund, focusing on Software, Data/Analytics, Cybersecurity, and Fintech. The move aligns with ITP’s DACH region strategy, following a profitable exit from softgarden in 2022.
Brief about Investcorp
Founded in 1982, Investcorp is a global investment manager specialising in alternative investments across various sectors. With 14 offices worldwide, including in the US, Europe, GCC, and Asia, it manages over $48B in total assets under management.
Employing around 500 people from 50 nationalities, Investcorp is active in private equity, real estate, credit, absolute return strategies, GP stakes, infrastructure, and insurance asset management.
