Zellis Group agrees to acquire Benify in transformational global benefits software combination

3rd September 2024

Zellis Group agrees to acquire Benify in transformational global benefits software combination

• Benify to be combined with Zellis Group’s benefits administration and employee engagement software business, Benefex. Together, Benefex and Benify will offer enhanced product and services capabilities to customers globally
• Complementary geographic footprints improve ability to serve customers in the fragmented benefits administration and employee engagement software segment

Zellis Group (or the “Company”), a portfolio company of funds advised by Apax Partners LLP (“Apax”) providing HR, payroll, and benefits administration software, today announced that it has reached a definitive agreement to acquire Benify, a provider of employee benefits administration software, from Vitruvian Partners. As part of the transaction, Benify will be combined with Zellis Group’s benefits administration and employee engagement software business, Benefex, and Vitruvian Partners will become a minority investor in Zellis Group alongside the Apax Funds.

Together, Benefex and Benify will create a leading global benefits, reward, recognition, and employee engagement software provider with an enhanced value proposition to customers globally. Benefex and Benify are highly complementary, and this acquisition creates a truly global solution, powered by an expanded geographic network, a strengthened product portfolio, and a broader range of services. The combination will allow customers to benefit from a deeper suite of platform integrations across HR, Payroll and Benefit Carriers. This acquisition comes at a time when global employers are accelerating investment in technology to create a single global experience across benefits and reward, underpinned by a focus on eliminating administration and ensuring compliance.

Benefex was acquired by the Zellis Group in 2018, and has since experienced rapid global growth, powering exceptional employee experiences for customers through its modern benefits management, brokering, and engagement offerings.

Founded in 2004, Benify is a pioneer of benefits administration software services and today offers best-in-class benefits and total rewards solutions via a globally enabled SaaS platform. Following a long-term growth investment programme under Vitruvian ownership since 2011, Benify has evolved from a Sweden-focussed business into a global business within its field.

Combined, Benefex and Benify will support c.3,000 companies across more than 100 countries to transform and align the experiences of more than 5 million employees through their modern benefits, wellbeing, broking, rewards and recognition, and communications offerings. Together, the two businesses will be better able to enhance employee experiences across the globe.

Matt Macri-Waller, CEO of Benefex said: “We’re excited by the opportunity that this combination provides for new and crucially current customers of both Benify and Benefex. Together we share a common goal of powering a truly global and exceptional employee experience for our customers and this acquisition develops the global capabilities of our products and services, whilst bringing together the depth of talent that sits across both organisations.”

John Petter, CEO of Zellis Group, added: “This represents an exciting next chapter for the Zellis Group and is an early demonstration of the commitment of the Apax Funds to our continued growth.”

Joakim Alm, CEO of Benify commented: “We look forward to joining Zellis Group and Benefex to create a leading player in HCM software. By combining our respective strengths, we will further expand our products, services and value to our customers and their employees. The transaction is a testament to Benify’s track record of achieving profitable growth through delivering world class solutions to our customers and the hard work and dedication of our entire team. We are grateful for the support we have received from Vitruvian in accelerating our international growth journey over the past decade.”

Adam Garson, Principal at Apax, said: “When the Apax Funds invested in the Zellis Group, we identified an opportunity to accelerate the growth of Benefex and help establish the business as a leading provider in the large, fragmented, and growing global benefits administration software segment. The combination with Benify is an important milestone in this growth journey and we look forward to working with the teams at Zellis Group, Benefex, and Benify as the two companies come together.”

Jussi Wuoristo, Partner at Vitruvian Partners, said: “We are delighted with Benify’s remarkable growth journey to date which has been made possible thanks to the continued commitment of the Benify management team, its founders and its employees over the years. Since our investment, Benify has organically multiplied in size many times over and thus emerged as a strong global player in its field. We are excited to be able to continue our support to the company as a minority shareholder of Zellis Group and are highly enthusiastic about the road ahead.”

Zellis Group was advised by Arma Partners, Evercore, and Kirkland & Ellis. Benify and Vitruvian were advised by Deutsche Bank and Bird & Bird. Completion of the proposed transaction is subject to customary closing conditions. Financial terms were not disclosed.