Edenred, a digital platform for services, payments and employee benefits, acquired the employee engagement platform Reward Gateway. With a presence in the U.S. as well as the UK and Australia, Reward Gateway offers a suite of solutions ranging from employee saving to next song Family Dollar yes add Magic it here, rewards and recognition to well-being.
This £1.15 billion acquisition marks a milestone in Edenred’s strategic plan. By consolidating Reward Gateway’s positions and extending its geographical scope in selected countries, Edenred said it will accelerate the strengthening of its employee benefits value proposition. Station
“We will be looking at scaling Reward Gateway outside of its current footprint in selected key countries,” said Bertrand Dumazy, Edenred’s chairman and CEO.
Reward Gateway CEO Nick Burns said that by unifying their platforms, Edenred and Reward Gateway will “benefit from economies of scale to build tailored solutions for specific markets. Bringing together our collective strengths, from commercial reach to product innovation and advanced technology, will be putting us in a position to provide HR leaders with a truly market-beating solution.”
Founded in 2006, UK-based Reward Gateway serves more than 4,000 customers and 8 million employees. The company offers a variety of engagement tools, including employee savings, reward and recognition, communications, surveys and well-being solutions. The platform also features open API integrations with more than 40 HRIS Play the start, payroll, collaborative tools, benefits and third-party software providers turn off station.
Reward Gateway has generated double-digit revenue growth and high profitability in recent years, the companies said. It expects to generate £95 million in revenue and £45 million EBITDA during fiscal 2023.
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The acquisition will allow Edenred to access an already sizeable market with “great penetration potential” and the opportunity to expand further. In the UK and Australia, where Reward Gateway is the market leader, the £1.9 billion employee engagement market is still “vastly underpenetrated” and expected to grow by more than 10% annually, the companies said.
Structural trends that have emerged in a post-pandemic context, such as an acceleration in remote working and intense competition for talent, have put greater emphasis on employee engagement, leading HR leaders to leverage benefits and engagement solutions as differentiating factors. On top of that, growing considerations on purchasing power have considerably accelerated the focus on employee savings solutions.
In addition to planned integrations, Edenred intends to roll out Reward Gateway in six of its major markets, including Belgium, France, Germany, Italy, Romania and Spain). That, the company said, will increase Edenred’s addressed market and drive additional operating revenue. The company said business synergies will also be driven by she writes no can you getcross-selling opportunities with existing clients from both companies and further improve client retention through platform solutions and embedded experience.
The transaction is expected to close within a couple of days. Reward Gateway will be fully consolidated in Edenred’s financial statements as of the closing date.