(Bloomberg) -- Zellis Group, the payroll software maker backed by Apax Partners, will acquire employee benefits platform Benify as deal activity in the European technology sector accelerates.
Investment firm Vitruvian Partners is selling Benify after owning the business since 2011, according to a statement Tuesday, which confirmed an earlier Bloomberg News report. The deal values Benify at €300 million ($331 million) to €400 million including debt, people with knowledge of the matter said.
Zellis plans to combine Benify with its own benefits administration platform Benefex, it said in the statement. Vitruvian and the Benify founders will continue to support the business as minority shareholders in Zellis Group.
Deutsche Bank AG advised Benify on the deal, while Zellis Group worked with Arma Partners and Evercore Inc.
Vitruvian, which focuses on mid-market buyouts, has more than $20 billion of assets under management. Benify was founded in Sweden in 2004 and its platform is now used by more than 3 million users, according to its website.
The transaction comes as deal activity in European sector intensifies with investors keen to deploy more capital in the space. Apax agreed to acquire Zellis from Bain Capital in April, valuing the business at about £1.25 billion ($1.6 billion).
EQT AB announced the purchase of a majority stake in AMCS, a software provider focused on waste management and recycling, in August. Bridgepoint Group Plc is considering a bid to take over Paris-listed software provider Esker SA, Bloomberg News reported last month.
(Updates throughout with confirmation, adds valuation in second paragraph.)
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