Paris, 12 April 2021 – Cegid, the specialist in business management solutions, plans to strengthen its position in the Payroll and Human Resources Management market with the proposed acquisition of Talentsoft, one of the key players in Cloud Talent Management solutions.
This major step will allow the new French entity to claim a European leadership position in this fast-growing sector and will pave the way for its expansion in both Europe and global markets.
Thanks to the excellence of its Human Capital Management software solution, which has rapidly become one of the European leaders, its user-centric approach and the unique know-how of its teams, Talentsoft has acquired 14 years of successful expertise serving 2,200 clients in France and in 130 countries.
The acquisition of Talentsoft will enable Cegid to expand its existing range with a Talent offer that is perfectly suited to the needs of SMEs and mid-market companies. With a presence in the Iberian Peninsula, North, Central and South America, this is also an opportunity to strengthen its international development, particularly through Talentsoft’s solid position in Northern Europe.
“The acquisition of Talentsoft will allow us to accelerate our strategy to serve Human Resources clients, who form one of Cegid’s five priority markets. By combining our two companies, Talentsoft and Cegid will become a leading group with revenue of over €600 million. Our vision, the strength of our two brands, the performance of the combined product portfolio, the talent of our respective teams and our culture of co-creation and entrepreneurship, as well as our common expertise with more than 80% of our combined turnover in the Cloud, constitute a tremendous opportunity. Thanks to this combination, we will be giving our clients access to a broad range of useful and innovative solutions in France and abroad,” explained Cegid CEO, Pascal Houillon.
Talentsoft, which has enjoyed spectacular growth since its inception, will find a major ally in Cegid, and its principal shareholder Silver Lake, to finance and structure its next phase of expansion.
“As a shareholder, Silver Lake is delighted to be able to continue to support Cegid’s development and help make it a leading European Cloud champion. With the arrival of Talentsoft, Cegid’s fifth acquisition since the beginning of the year, we will be consolidating the company’s strategy in the Payroll and Human Resources market while opening another chapter in its expansion in France and Europe. We are very confident in the success of this new entity; the quality and complementarity of Talentsoft’s solutions with those of Cegid, as well as the quality of the management teams, make this combination a perfect match for Human Resources departments in a market with very strong potential,” said Christian Lucas, Co-Head of Silver Lake EMEA and Vice-Chairman of Cegid Group’s Board of Directors.
Goldman Sachs, which has supported Talentsoft’s growth through investments since 2015, BPI, Highland Europe, Seventure and TempoCap, all expressed their enthusiasm for the transaction.
“We are delighted to have supported Talentsoft in this decisive phase of its development, in partnership with its founders Jean-Stéphane, Joël, Alex, and their entrepreneurial team. We are grateful for their trust which has enabled us to invest in their technology, expand their product offering, triple their client base, and now establish with Cegid one of the European tech champions to pursue their deployment, serving their mission to unleash the potential of human capital,” commented Alexandre Flavier, Executive Director at Goldman Sachs.
“Having already helped another company join Cegid a few years ago, we are delighted to see Talentsoft join a firm such as Cegid, with its proven business expertise and integration capabilities. There is no doubt that this new entity will be one of the finest ‘French Tech’ flagships, continuing to expand and carry our country’s colours high on the international stage,” added Nicolas Dufourcq, Executive Director, BPI.
The three co-founders Jean-Stéphane Arcis, CEO, Joel Bentolila, CTO, and Alexandre Pachulski, Product Director, along with the management team and Talentsoft’s 600 employees, will join Cegid in the coming weeks.
“This merger comes at a perfect time in Talentsoft’s development. Driven by strong growth over the last few years and more than ever motivated by the desire to support our clients in their digital HR transformation and bring out the best in all their talent, we are delighted to be joining Cegid, which is also an expert in the Human Resources market. The synergies are obvious, both in terms of the solutions we offer and the geographical areas in which we operate. With Cegid, we will strive to continue this magnificent adventure, which is a great source of pride, serving our clients and conquering new markets,” concluded Jean-Stéphane Arcis, Talentsoft CEO.
As is customary, the transaction remains subject to the approval of the competent regulatory authorities and to the information and consultation processes of the relevant employee representative bodies in accordance with applicable laws.
Cegid is a major provider of business management solutions for CPAs, financial and tax managers, as well as for HR, payroll and retail professionals With proven experience as a leader in SaaS management solutions, Cegid provides assistance in the digitalization of companies and public sector bodies. Cegid’s vision of business is both pragmatic and forward thinking, and the company has mastered new technologies so as to provide useful innovation, not to mention unique expertise in terms of regulatory matters. Cegid is with its clients for the long haul. In a constantly changing world, Cegid is opening up new possibilities so that every area of a business can increase its added value.
Cegid has 3,000 employees and sells its solutions in 75 countries. In 2020, Cegid recorded a turnover of €498 million. Pascal Houillon has been the CEO since March 2017.
The world of work is rapidly evolving. Future business success will belong to those who transform the skills and talents of their workforce with agility and purpose. That’s why, at Talentsoft, our mission is to unlock the potential of every single employee, transforming your organization in the process.
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