Apax Global Alpha Limited has announced its plans to invest approximately €36m in Zellis Group, a leading provider of payroll and HR software solutions in the UK and Ireland. The investment is part of the acquisition by the Apax XI Fund, in which AGA is a limited partner. Zellis Group is known for its strong core business fundamentals, high recurring revenue, and customer retention, serving approximately one third of the FTSE 100 companies. The company is headquartered in Bristol, with operations in the UK, Ireland, India, and the Philippines.
Apax has identified Zellis as an attractive opportunity to acquire a growing business with strong fundamentals, given its extensive experience in the software space, particularly in the HR software market. The investment thesis is to support Zellis in scaling and growing its market share in the UK, Ireland, and internationally, as well as to enhance its position in core payroll offerings and expand its benefits administration business.
AGA, listed on the London Stock Exchange, provides investors with access to a diversified portfolio of private equity funds advised by Apax, as well as a focused portfolio of mostly debt investments. In June 2022, AGA made a commitment of approximately $700m to Apax XI. The expected investment in Zellis Group is calculated based on the look-through positions of Apax XI's overall investment in Zellis Group and is translated based on the latest exchange rates available.
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