Scaling a leading HR software solutions business – Adam Garson discusses the Apax Funds’ investment in the Zellis Group

Zellis provides best-in-class payroll and HR software to customers across the UK and Ireland.  Through its Benefex business unit, the company also provides a modern software suite that helps customers across the globe manage their employee benefits and experiences in one platform. Zellis serves approximately one third of the FTSE100, with its payroll software used to pay c.5 million individuals each month. Benefex helps over 900 companies across more than 90 countries manage the experiences of over 2 million employees. Moreover, Zellis is a widely respected business and earlier this year was recognized in The Times’ ranking of the 100 best businesses to work for in the UK.

We had been tracking Zellis for some time and were impressed by the company’s leading products, strong fundamentals, and long-standing customer relationships. It was clear that Zellis was a market leader, and we saw this partnership as an opportunity to work with the company in building on the existing strong position of its core payroll, HR, and benefits administration software offerings, and in driving long-term growth through organic investments and M&A.

The strength of Zellis’ software solutions positions it well to capitalize on the sector’s growth, supported by many tailwinds including increasing business complexity, regulatory requirements, and a push for employers to provide great experiences for their employees. The Zellis team’s investments in technology and go-to-market infrastructure have set the company up for long-term success. Additionally, Zellis’ high levels of recurring revenue and its strong customer retention profile provide a solid foundation for further growth. We believe that this blend of favorable market conditions and the quality of Zellis’ product offerings will support strong growth now and in the future.

Zellis has an excellent opportunity to capitalize on structural growth within the markets that it serves, which will be aided by the Apax Funds’ experience in the sector. We plan to support the business in continuing to make investments in product innovation and operational scale required to meet increased demand, working closely with Apax’s Operational Excellence Practice team. We look forward to partnering with the Zellis team as they look to accelerate growth over the coming years.