TA-, Warburg-backed Epassi takes wellness route with Exercite’s acquisition

Exercite is a corporate health and wellness benefit service provider in Germany and the Netherlands.

  • Waterland Private Equity and Exercite’s founders are the sellers
  • The transaction will give the combined company an enterprise value of over $1bn
  • Epassi is a digital employee benefit payments provider

Epassi Group, backed by TA Associates and Warburg Pincus, has acquired Exercite, a corporate health and wellness benefit service provider in Germany and the Netherlands, from Waterland Private Equity and its founders.

The transaction will give the combined company an enterprise value of over $1 billion, according to people familiar with the matter.

Exercite has three brands – Hansefit, Bedrijfsfitness Nederland and Fitbase. It provides digital services for on-demand fitness, wellness and occupational health management.

Epassi and Exercite’s merger will add over 7,000 corporate customers and over 12,000 merchants to Epassi’s portfolio, according to a release. The combined group will serve around 20,000 companies across seven countries in Europe –Germany, Finland, Sweden, Italy, Netherlands, UK and Ireland.

“Exercite is a compelling and transformational acquisition for Epassi, substantially accelerating our joint long-term value creation plan and giving the company significant scale in the large and attractive German and Dutch corporate health and wellness markets,” said Issam Abedin, principal, and Tarik-Timo Ghoniem, VP, Warburg Pincus. “M&A in Europe’s largest employment markets is a core element of TA and Warburg Pincus’ investment strategy for Epassi and will continue to drive long-term value creation across the platform.”

This acquisition follows the completion of TA and Warburg’s majority investment in Epassi, which was announced in August.

The transaction is subject to customary closing conditions.

Epassi is a digital employee benefit payments provider in the Nordics, UK and Italy. It is based in Espoo, Finland.

TA invests in technology, healthcare, financial services, consumer and business services sectors and has offices in Boston, Menlo Park, Austin, London, Mumbai and Hong Kong.

New York-based Warburg Pincus is a global growth investor.

Waterland is a private equity investment firm based in Bussum, the Netherlands.

Goodwin, Kirkland & Ellis and Paul Weiss advised TA and Warburg Pincus on the acquisition of Epassi and the combination with Exercite. Hengeler Mueller advised Waterland.