The Lyon-based software publisher is continuing its push into the Human Capital Management market by stepping up its acquisitions. Cegid has just acquired DigitalRecruiters, a SaaS platform that aims to shorten the recruitment process. AURIS Finance experts, specialists in Mergers and Acquisitions consulting, assist many French software publishers and recruitment specialists in their merger strategy. Here they discuss this new market move.
Founded in 1983, the French software publishing company has come a long way and now has 4,400 employees worldwide and almost half a million clients in 130 countries. In 2021, the group’s turnover stands at €800 million. Initially specialising in software solutions for accountants, Cegid has expanded into four other markets: finance, ERP, treasury and tax, small businesses, retail, payroll and talent management.
Strengthening its HR Tech sector position
Since 2021, the Lyon-based software publisher has been strengthening its presence in human resources solutions through its Human Capital Management division. This strategy has been supported by a series of inorganic growth operations. In July 2021, Cegid acquired Talentsoft, the European leader in cloud applications for talent management and training. This highly strategic acquisition has enabled Cegid to boost its presence in the cloud, where the new entity generates 80% of its revenue.
Foray into the cloud
Cegid then positioned itself on two other players in the sector: VisualTime, a time management specialist, and Wittyfit, a tool for measuring employee engagement. With the acquisition of DigitalRecruiters, Cegid completes its range of HR solutions. A cloud-based recruitment platform offering white-label sector career sites and optimised candidate career paths. Founded in 2015, the French start-up currently has 187 clients, including Boulanger, Casino, Décathlon, Franprix, and Renault.
Stepping up inorganic growth since 2016
For the Lyon-based publisher, 2016 was a turning point in its development strategy. Indeed, it was on this date that the French company was acquired by a consortium of two funds from English-speaking countries: the American Lake Partners and the British AltaOne, for an amount of €580 million. It should be noted that the Groupama insurance group had already acquired a 27% stake in Cegid in 2007. Since 2016, the group has intensified its development strategy by targeting strategic acquisitions in the Cloud Computing sector.
A valuation reaching €5.5 billion
Driven by the digital boom, the group’s business has skyrocketed: turnover, which stood at €300 million in 2015, exceeded €700 million in 2021. The group plans to reach €1.3 billion in revenue within four years. In 2021, the KKR fund joined the consortium of shareholders taking a minority position in the company. At the time, the company was valued at €5.5 billion, a sixfold increase in four years.
AURIS Finance experts at your side
Specialised by sector, experts at AURIS Finance support French tech players in their inorganic growth strategies. On a daily basis, they advise companies on their acquisitions and sales. From target identification to closing, including the due diligence phase, our experts are at your side.
