Nordic private equity house Verdane has tapped its flagship Edda vehicle to buy and merge a pair of cloud-based HR and recruitment providers.
The firm said HR Manager and Webcruiter will be fused to create a leading Nordic platform for talent recruitment and development.
Webcruiter offers a specialised system for talent agents and leaders on the hunt for professional recruitment solutions, and has more than 400 clients and users in over 120 markets.
HR Manager has over 900 clients, with users in more than 50 countries, and processes more than 3.5 million applications annually.
Expected revenue for HR Manager and Webcruiter stands at 55 and 49 million NOK, respectively, in 2018.
Verdane said the Nordic market for HR software is valued at close to NOK5bn ($580m), and faces significant changes in the years ahead.
The market for cloud-based solutions is expected to grow at 10 to 20 per cent each year until 2020, with far higher market penetration in the Nordics than in the rest of Europe and the US, it added.
Bjarne Lie, managing partner at Verdane Capital Advisors, said, “HR Manager and Webcruiter both offer solid solutions and have very competent teams. This fusion will spark the development of even better products available to a greater number of clients across the Nordic market.”
Verdane Edda will be the majority owner of the fused entity, which joins a Verdane roster of over 170 software and consumer internet investments made over the last 14 years.
The firm closed Edda on SEK3bn ($330m) in March this year on its hard cap.
The vehicle is being used to target high-growth companies operating in the software and consumer internet sectors across the Nordics, eyeing controlling stakes and deploying up to SEK500m per investment.
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