The acquisition of one of the market leaders in Germany strengthens Grupa Pracuj's role as a leading entity in the HR Tech sector in Central and Eastern Europe.

Grupa Pracuj acquires 100% of shares in softgarden, which is one of the market leaders in systems supporting recruitment processes in Germany. This is the largest foreign acquisition in years by a Polish technology company in Germany and the DACH region. The transaction value is nearly 118 million EUR.

softgarden, beyond its key position in its home market, is developing its structures in other markets of the DACH region and has growth potential in other European countries. The acquisition of the German leader means further consistent expansion of the digital ecosystem of HR technologies that Grupa Pracuj is creating. It currently consists of recruitment services: Pracuj.pl, the:protocol, Dryg.pl and Robota.ua, as well as systems supporting employers in recruitment and employee development, based on the SaaS (Software as a Service) model: eRecruiter and the benefits platform Worksmile.

 

image_processing20210817-15310-it7951.jpgOur experience in foreign expansion shows that the key is to enter into cooperation with a local leader that also has an efficient and engaged management team. softgarden meets both criteria. It is one of the largest players in Germany, also operating in other European countries and recording year-on-year growth. By investing in a new company with a solid customer base, an effective management team and very good operational results, we immediately enter the first league in the area of supporting innovative recruitment in Germany, with great potential for further growth, as well as for scaling the business to other markets – comments Przemysław Gacek, President of the Management Board

of Grupa Pracuj.

One of the leaders in Germany

softgarden is among the providers of HR tech solutions supporting innovative recruitment (so-called Talent Acquisition Systems). The brand offers, among other things, tools for managing recruitment, creating career pages, generating employer reviews and employee referrals. softgarden's tools also include so-called multiposting – automated publication of job ads on multiple job listing sites. In total, 1,700 employers use softgarden's services, mainly from Germany, but also from the DACH region and several other European countries. The team consists of over 140 top-class specialists who, after the acquisition, will continue to develop products and services at the current high level. Grupa Pracuj is acquiring softgarden from a company controlled by Investcorp, a leading global alternative investment firm (holding 98.95% of shares) and from the company's founder, Stefan Schüffler (1.05% of shares).


Along with the acquisition, Grupa Pracuj is also taking over absence.io – a system offering dedicated HR software for the small and medium-sized enterprise sector, supporting absence management.


softgarden and absence.io are the next HR Tech solutions joining Grupa Pracuj's digital ecosystem in the last dozen or so months – after last year's purchase of shares in Worksmile and the launch of new recruitment services the:protocol and Dryg.pl. The company is investing in further HR Tech solutions based on the SaaS (Software as a Service) model, which form a coherent ecosystem and expand the possibilities of supporting European companies in many areas of talent management.


Exchange of know-how and autonomous development

After joining Grupa Pracuj, softgarden will remain an independent company. The company's business model, its offer and the principles of cooperation with clients will not change.


MathiasHeese.jpegAt softgarden, we can pride ourselves on fast and stable growth in the HR Tech area in the German market, where we are one of the leaders in software supporting recruitment. We are also continuing our development in other European markets, with the ambition to enter new ones. By joining Grupa Pracuj, we gain an experienced partner who understands our operating model very well, as well as the challenges and opportunities ahead of us. By exchanging experiences and continuing to develop through innovation, we have a common goal – to build a comprehensive ecosystem of solutions supporting both employers and candidates in European markets – says Mathias Heese, CEO of softgarden.



As emphasized by the Management Board of Grupa Pracuj, softgarden's priority will be to continue operations in Germany, strengthen its position in Germany and throughout the DACH region, and use development opportunities in other European countries.


nachyna rafał.jpgWe see very great potential in combining our experience with the know-how accumulated by softgarden. It can bring us many benefits both in our existing markets and in new regions where Grupa Pracuj is beginning to operate thanks to this acquisition. At the same time, however, it should be emphasized that the leading Grupa Pracuj system supporting recruitment, offered for the Polish market, remains eRecruiter – the largest and best-integrated SaaS-model solution in the country - comments Rafał Nachyna, Chief Operating Officer of Grupa Pracuj.



Dynamic growth of Grupa Pracuj

The investment is another step in the development of Grupa Pracuj, which entered the Warsaw Stock Exchange in December 2021. Growing employer demand for online recruitment and modern HR technologies allowed the company to achieve very good financial results in 2021. Grupa Pracuj's operating profit amounted to PLN 227.5 million last year (an increase of 67.1% year-on-year), and adjusted EBITDA reached PLN 257.3 million (an increase of 73.5% year-on-year). The adjusted EBITDA margin thus increased to 54% (from 50% in 2020).