Global employee engagement platform, Reward Gateway acquired by worldwide leader in Employee Benefits, Edenred, for £1.15 bn
LONDON, May 16, 2023 — Global employee engagement company, Reward Gateway has been acquired by the world’s leading platform for people at work, Edenred for £1.15 bn from funds managed by Abry Partners and Castik Capital.
Together Edenred and Reward Gateway will bring a unique and differentiated value proposition at scale to the market, by providing leading end-to-end employee services, from digital employee benefits, employee savings, recognition and rewards programmes, to well-being and corporate social animation solutions. This acquisition brings together two organisations with aligned mission and values, track record and offers to innovate and provide HR leaders with a truly market-beating solution.
The deal will bring many benefits to Edenred and Reward Gateway clients including accelerated delivery of a comprehensive range of solutions and most notably, an extended reach of Reward Gateway’s platform into new regions and countries, as it is planned to be rolled-out in 6 major Edenred countries (Belgium, France, Germany, Italy, Romania, Spain). It will bring Human Resources departments access to a unique, multi-country Employee Benefits and Engagement platform, empowering them to build the right combination of benefits and engagement tools to meet the changing needs of their people and their company.
As part of the deal, Reward Gateway will join the Employee Benefits Division within Edenred under the leadership of Arnaud Erulin, Employee Benefits, COO. Nick Burns, Global CEO, Reward Gateway will stay on and lead the business.
Arnaud Erulin, Global COO Employee Benefits Solutions of Edenred, said, “Edenred has successfully extended its portfolio into non-Meal & Food benefits over the years. The Group has notably developed a leading offer in Employee Benefits and Savings platforms in 17 countries as part of its Beyond 22-25 strategy. This acquisition marks a major milestone in the roll-out of our strategic plan, putting Edenred in the best position to be the most trusted global Employee Benefits & Engagement platform. It opens the door for Edenred to accelerate the strengthening of its Employee Benefits value proposition. This move offers global corporations and enterprises international consistency in every market that we operate in.”
Nick Burns, Global CEO of Reward Gateway, said: “The combination of Reward Gateway’s operations and technology with Edenred’s position as a global market leader across 1 million corporate clients in 45 countries, offers an accelerated path to achieve our mission of ‘making the world a better place to work’. As we will aim at a single unified platform, we 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.
“In the context of a post pandemic world we have displaced workforces, and as the cost-of-living crisis continues, many employees are struggling to make ends meet. Employers too are extremely affected by market instability, in addition to other challenges such as inflation, staff retention and the war for talent. Our goal is to unite and connect people with organisations that are set up and armed to support their workforces. This deal solves the macro social issues that exist in today’s workforce.”
Listed on the Euronext Paris stock exchange, Edenred is part of the CAC Next 20 index with a market capitalisation of over €14.5 billion. The company has 10,000 employees worldwide and generated more than €2.0 billion in revenue in 2022.
With over 4,000 clients, Reward Gateway helps improve the working lives of over 8 million users around the world. Reward Gateway has over 650 employees across the UK, US, Australia and Bulgaria.
Reward Gateway has enjoyed continued double-digit revenue growth and consistently high profitability over the recent years. It forecasts to generate £95m revenue and £45m EBITDA in FY2023.
The transaction is expected to close in the coming days.
About Reward Gateway
Reward Gateway helps companies engage, motivate and retain people – every day, all over the world. Partnering with over 4,000 companies in 23 countries, we empower more than 8 million users to connect, appreciate and support one another to make the world a better place to work. Our unified employee engagement hub provides the best of recognition, reward, wellbeing, surveys, benefits and discounts that support talent acquisition, retention and values-driven growth.
About Edenred
Edenred is a leading digital platform for services and payments and the everyday companion for people at work, connecting 52 million users and 2 million partner merchants in 45 countries via close to 1 million corporate clients.
Edenred offers specific-purpose payment solutions for food (such as meal benefits), incentives (such as gift cards, employee engagement platforms), mobility (such as multi-energy, maintenance, toll, parking and commuter solutions) and corporate payments (such as virtual cards).
True to the Group’s purpose, “Enrich connections. For good.”, these solutions enhance users’ well-being and purchasing power. They improve companies’ attractiveness and efficiency, and vitalize the employment market and the local economy. They also foster access to healthier food, more environmentally friendly products and softer mobility.
Edenred’s 10,000 employees are committed to making the world of work a connected ecosystem that is safer, more efficient and more responsible every day.
In 2022, thanks to its global technology assets, the Group managed some €38 billion in business volume, primarily carried out via mobile applications, online platforms and cards.
Edenred is listed on the Euronext Paris stock exchange and included in the following indices: CAC 40 ESG, CAC Next 20, CAC Large 60, Euronext 100, FTSE4Good and MSCI Europe.
The logos and other trademarks mentioned and featured in this press release are registered trademarks of Edenred S.E., its subsidiaries or third parties. They may not be used for commercial purposes without prior written consent from their owners.
