Merger enables significant acceleration of growth as part of a comprehensive buy and build strategy
Karlsruhe, July 24, 2020 – Technology investor LEA Partners ("LEA") enables the merger of LANDWEHR Group and prosoft Group and thus forming the leading HCM software provider for the German temporary staffing market.
LEA initially invested in LANDWEHR in April 2019 based on the clear strategy of investing in software companies with leading market positions, high degrees of recurring revenues and value generation opportunities through strategic change. Following the acquisition of rhb Software in November 2019 the merger with prosoft now represents an important milestone within this strategy. The newly formed group serves more than 3,200 customers and has more than 330 employees at 4 locations in Germany.
Sebastian Müller, Founder of LEA:
"The temporary staffing market offers significant growth opportunities due to the high regulatory requirements and the still extremely low level of digitalization. Since our initial investment in LANDWEHR, it has been our vision to create the leading provider in this market while bringing together the best teams and products to offer customers an end-to-end product experience based on latest technologies. The merger is a prime example of the key role a sector driven private equity investor can play in bringing together companies that have been competitors for decades. We are currently experiencing an unimaginable euphoria among all parties involved, which will enable us to significantly grow not only organically, but also further through acquisitions in the midst of the corona pandemic".
Marc Linkert, Managing Director of LANDWEHR:
"By combining the best of both worlds, we take everything to a new, the next level. We are creating perspectives that are truly fantastic. Together we will improve and expand our product line and our market leadership. Our vision is to be the strongest possible partner in every part of an industry that is focused on managing staff and staff hours and has to meet complex legal regulations.”
Axel Wegmann, Founder of prosoft:
"The unique combination of LEA Partners as a software focused private equity investor and LANDWEHR not only offers many benefits for our customers, but also a high degree of stability and attractive growth opportunities. I am very happy to continue to participate in the success of the new group as a shareholder."
LEA Partners is an entrepreneurial-minded multi-stage private equity firm investing in growth technology companies that are driving transformative change in their industries. Founded in 2002, LEA Partners has advised on the investment in several companies. Operating out of Karlsruhe, one of Europe's largest technology clusters, its mission is to fund and support ambitious founders and executives by leveraging them with practical, hands-on growth expertise to achieve market leadership. Following the exit of BELLIN to Coupa Software in June 2020, the merger of LANDWEHR and prosoft represents the next major transaction for LEA’s EUR 200 million B2B tech fund focusing on software companies in the DACH region.