Two private equity firms enter the HR tech space with Reward Gateway acquisition

Following on from an active April – including Ceridian’s acquisition of AI-focused Ideal – May looks off to a busy start for the HR tech world.

Only a few days into the new month, London-headquartered Reward Gateway announced it has been acquired by two private equity firms: Abry Partners and Castik Capital.

Abry Partners is based in the US and focuses on media, communications and business technology investments, while Castik Captial is a European multi-sector investment firm looking for long-term value.

Financial details of the deal were not disclosed by any of the parties. The acquisition is expected to close in the third quarter of 2021.

Reward Gateway had previously been controlled by Great Hill Partners, and its HR technology offering centers around a SaaS employee engagement platform. The company’s operates around its belief that happy, engaged employees are more productive and create better organizations.

Its solutions, which include flexible employee benefits, salary sacrifice schemes and employee communications solutions, are used by 5 million users and almost 2,000 companies across the world, according to Reward Gateway.

Talking about the acquisition, the company’s CEO Doug Butler said:

“We are grateful for Great Hill’s support and guidance, and excited to work with new partners who also understand and appreciate our core values, and who will support our vision for product innovation and growth, both organic and through acquisitions.”

Castik Capital partner Michael Phillips added: “As the world begins to return to a new normal, employee engagement will only become more important.

“Companies must navigate the complexities of in-person, remote and hybrid workforces, which will create an entire new set of challenges for HR professionals that Reward Gateway is well positioned to help solve.”