Investcorp Technology Partners to Acquire Majority of VEDA

Investcorp's global technology arm, Investcorp Technology Partners (ITP), is poised to secure a majority stake in VEDA GmbH, a payroll-as-a-service provider hailing from Germany.^[1]  

Although the terms of the transaction have not been disclosed, the deal will see VEDA's CEO Ralf Graessler maintain his investment alongside Investcorp.

Headquartered in Alsdorf, Germany, VEDA has a workforce of about 170 employees and offers an all-encompassing platform for digital HR management. Covering payroll, time and security management, recruiting, personnel development, and learning management, VEDA helps companies digitize and streamline tasks. 

VEDA's client list includes the likes of MAN and Lufthansa, as well as numerous mid-sized enterprises ranging from 150 to 5,000 employees. In 2023, the company generated EUR 20 million ($21.8 million) in revenues. 

As VEDA's inaugural institutional investor, ITP is gearing up to reinforce the company's go-to-market strategy, with an emphasis on expanding its product and service portfolio, especially in the rapidly growing cloud business sector. Given VEDA's extensive operations in the dynamic and diverse DACH (Germany, Austria, Switzerland) HR and payroll markets, this strategic investment is not only expected to propel VEDA's growth but also to pave the way for additional acquisitions of businesses complementing its offerings.

Founded in Bahrain in 1982, Investcorp is a global investment manager that specializes in alternative investments. It has 14 offices across the US, UK, Saudi Arabia, Qatar, UAE, India, China, Japan, and Singapore, and managed $50 billion in assets. ITP invests in lower mid-market technology companies focused on software, data/analytics, cybersecurity, and fintech, ITP's investment in VEDA is the fourth venture from its global fund, Investcorp Technology Partners V.

The transaction is slated for closure in the first quarter of 2024, pending the fulfillment of customary closing conditions.