Investcorp sells softgarden to Grupa Pracuj for $125 million

By Emma-Victoria Farr

BERLIN (Reuters) - Investcorp has sold its German human resources (HR) software management firm softgarden to Poland's Grupa Pracuj for around 120 million euros ($125 million), Hazem Ben-Gacem, Investcorp's co-chief executive officer told Reuters.

The sale marks a three times return on investment for Bahrain-based Investcorp, which bought its controlling stake in softgarden in 2018, Ben-Gacem said on the sidelines of the SuperReturn conference in Berlin.

The scope of human resources at companies has changed in recent years with an increased use of temporary labour, as well as aspects like managing employee sabbaticals, taking its function beyond hiring and firing, Ben-Gacem said.

Berlin-based softgarden offers software for digital recruitment as well as features including time-tracking, vacation and absence management, and personnel file management.

Discussions between softgarden and Warsaw-based Grupa Pracuj picked up following the outbreak of war in Ukraine. Indeed, the close knit partnership formed between the European countries involved helped get the deal over the line, Ben-Gacem said.

Investcorp is closing its fifth technology fund in the next few months, targeting $700 million, he said.

Investcorp Technology Partners was advised on the deal by Covington & Burling, Deloitte and Kuhn & Partner. Grupa Pracuj was advised by Ebner Stolz, Houlihan Lokey and White & Case.

Grupa Pracuj did not immediately return requests for comment.

($1 = 0.9582 euros)

(Reporting by Emma-Victoria Farr Editing by Andres Gonzalez and Mark Potter)