Investcorp Technology Partners announces acquisition of Softgarden

3 Sep 2018

Investcorp Technology Partners, a leading European lower middle market technology investor, today announces that it has acquired Berlin-based Softgarden, a fast-growing Human Resources (HR) software provider for an undisclosed sum. The investment is the fourth deal from Investcorp’s fourth Technology Fund.

Founded in 2005, Softgarden offers an innovative recruitment technology platform to a diversified set of German midmarket and enterprise customers. The company’s “Applicant Tracking System” (ATS), a SaaS platform covering the entire digital corporate recruitment process, enables companies to streamline and manage their entire recruitment process in a fully automated and data-privacy compliant manner. In addition to this, Softgarden 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 is EBITDA positive and has been able to grow rapidly (2015-2018 CAGR of +35%) 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. The company’s co-founder, Stefan Schüffler is committed to remaining involved in Softgarden’s future development.

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 Technology Partners portfolio.”

Softgarden CEO, Mathias Heese, added, “We are extremely pleased to have found a partner in Investcorp, and recognize their expertise in backing technology and software businesses. This knowledge, combined with their deep understanding of our business, will help to drive the company’s future growth and innovation. The investment is testament to the attractive business we have built thus far and we look forward to this exciting new chapter.”

Germany represents a core market for Investcorp with the firm having already made three investments in the country this year. In April, it announced the acquisition of Bürocampus Wangen, a modern office campus in Stuttgart and its first German real estate investment as part of a broader pan-European strategy. In May, the firm announced that it had established a platform to enter the German dental sector via its investments in Privatzahnarztklinik Schloss Schellenstein GmbH (“PSS”), one of the leading centres for implantology and dental surgery, and Acura Kliniken, a licensed hospital in Albstadt, Germany.

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. The other investments Investcorp has made from its fourth Technology Fund include Calligo, a proprietary cloud solution platform, Ageras, an online marketplace matching SMEs with professional service providers and Impero, a provider of online student safety, classroom and network management software.

Closing of the transaction is subject to customary anti-trust clearance. Investcorp Technology Partners. acquires Softgarden from a shareholder group including Cipio Partners, Brandenburg Kapital, Neuhaus and the company’s founders Stefan Schüffler and Dominik Faber. Investcorp Technology Partners was advised by Covington, Deloitte, PwC and Code & Co and the sellers were advised by Stella EOC and CMS.