Apax’s Zellis Said to Near Deal to Buy Benefits Platform Benify

(Bloomberg) -- Zellis, the payroll software maker backed by Apax Partners, is nearing a deal to acquire employee benefits platform Benify as deal activity in the European technology sector accelerates, according to people familiar with the matter.  

An agreement between Apax and Benify’s owner, investment firm Vitruvian Partners, could be announced in the coming days, the people said. The deal is set to value Benify at several hundred million dollars, according to the people, who asked not to be identified because the information is private.

Vitruvian, which manages about €16 billion ($17.7 billion) of assets, has been working with advisers at Deutsche Bank AG on the sale, the people said. 

Representatives for Apax and Deutsche Bank declined to comment. Spokespeople for Vitruvian and Zellis didn’t immediately respond to queries.

Vitruvian, which focuses on mid-market buyouts, acquired a controlling stake in Benify in 2011 for an undisclosed price. 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. 

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