Investcorp enters €3bn DACH HR software market with Veda

Veda’s revenues were around €20 million in 2023.

  • Veda’s customers include airline Lufthansa
  • Investcorp is Veda’s first institutional investor
  • The private equity firm will support add-on acquisitions

Investcorp has signed a deal to buy a majority stake in Veda, an HR software and payroll-as-a-service provider in the “large and fragmented” DACH market.

Veda’s revenues in 2023 were around €20 million and the company’s roughly 1,200 customers include airline Lufthansa and “many mid-market enterprises”, according to a statement.

The company focuses on the DACH region, where the HR and payroll software market for SMEs is around €3 billion, the statement said. It is headquartered in Alsdorf, Germany and its CEO Ralf Graessler will remain invested.

Investcorp is Veda’s first institutional investor and is investing via Investcorp Technology Partners (ITP). It plans to grow Veda’s go-to-market strategy and its products and services, focusing on the company’s “fast-growing” cloud operations. Add-on acquisitions will focus on companies with complementary products and services in what the statement described as a “large and fragmented” DACH market.

Veda is ITP’s fourth investment from its global fund Investcorp Technology Partners V. It follows Italian cybersecurity company HWG Sabada, US partner relationship management software provider Zift Solutions and Dutch software engineering company NetRom.

Investcorp is a private equity company with 14 offices in the US, Europe, GCC and Asia. It has over $48 billion in AuM. Its ITP arm invests in lower mid-market technology companies.