Reward Gateway Announces Sale to Private Equity Firms Abry Partners and Castik Capital
Investment and expertise will fuel next stage of growth and further advance the HR technology company’s mission to make the world a better place to work
Reward Gateway, a global HR technology and employee engagement company, today announced it has entered into a definitive agreement to be acquired by Abry Partners and Castik Capital. The acquisition of Reward Gateway validates the company’s strategic vision, expansive growth strategy, and the value its products and services deliver to clients. Previously controlled by Great Hill Partners, the company has seen more than 180% growth in revenue since 2015 and currently supports more than 1,900 customers with over 5 million employees globally.
Reward Gateway offers a leading SaaS employee engagement platform that centralizes employee reward and recognition, discounts, communications, surveys, wellbeing and flexible benefits. Its strategic products support companies with today’s most difficult people challenges, such as the digitization of the workplace, attracting and keeping talent, aligning and supporting remote workforces and handling complex cultural issues.
“I could not be more proud of the Reward Gateway team for living our mission and delighting our customers every single day by helping thousands of organizations promote employee engagement, enhance culture and improve business outcomes.” said Doug Butler, CEO of Reward Gateway. “We are grateful for Great Hill’s support and guidance, and excited to work with new partners that also understand and appreciate our core values, and who will support our vision for product innovation and growth, both organic and through acquisitions.”
Brian St. Jean, Partner at Abry Partners said: "Reward Gateway’s reputation as a leader and innovator in the employee engagement technology industry is well-earned, as evidenced by their world class NPS score of 72 and the clear demand for the solutions it brings to market. We look forward to partnering with the Reward Gateway leadership team to continue the company’s fast-paced growth and further support their mission, culture and customers.”
Michael Phililips, Partner at Castik Capital said: “As the world begins to return to a new normal, employee engagement will only become more important. Companies must navigate the complexities of in-person, remote and hybrid workforces, which will create an entire new set of challenges for HR professionals that Reward Gateway is well positioned to help solve.”
Chris Busby, Partner at Great Hill Partners said: "We are so proud to have partnered with Reward Gateway to support a period of exceptional company growth, and its mission to make the world a better place to work. We would like to thank the leadership, and the entire Reward Gateway team, for their outstanding execution in growing the company, and building intuitive products with a focus on delighting their customers. Reward Gateway is extremely well positioned for continued success in the years to come.”
The transaction is expected to be completed in the third quarter of 2021, subject to customary closing conditions, including regulatory approvals. Terms of the agreement were not disclosed. Great Hill Partners and Reward Gateway received financial advice from William Blair & Company and legal advice from Squire Patron Boggs and Osborne Clarke.
About Reward Gateway: Reward Gateway helps more than 1,900 of the world’s leading companies, in 23 countries, to connect, recognize and support their best people with an employee engagement platform that brings employee benefits, discounts, recognition and reward, employee wellbeing, employee communications, and employee surveys into one unified hub. Clients include American Express, Unilever, Samsung, IBM, and McDonald’s. For more information, please visit www.rewardgateway.com.
About Abry Partners: Abry is one of the most experienced and successful sector-focused private equity investment firms in North America. Since its founding in 1989, the firm has completed over $82 billion of leveraged transactions and other private equity or preferred equity placements. Currently, the firm manages over $5 billion of capital across its active funds. For more information on Abry, please visit www.abry.com.
About Castik Capital: Castik Capital S.à r.l (“Castik”) manages investments in private equity. Castik is a European multi-strategy investment manager, acquiring significant ownership positions in European private and public companies, where long-term value can be generated through active partnerships with management teams. Founded in 2014, Castik is based in Luxembourg and focuses on identifying and developing investment opportunities across Europe. The advisor to Castik is Castik Capital Partners GmbH, based in Munich. Investments are made by the Luxembourg-based fund, EPIC II, the second fund managed by Castik, which had its final fund close of €1.25bn in October 2020. For more information on Castik, please visit https://www.castik.com/
About Great Hill Partners: Great Hill Partners is a Boston-based private equity firm targeting investments of $25 million to $500 million in high-growth companies across the software, digital commerce, financial technology, healthcare, and digital infrastructure sectors. Over the past two decades, Great Hill has raised nearly $8 billion of commitments and invested in more than 75 companies, establishing an extensive track record of building long-term partnerships with entrepreneurs and providing flexible resources to help middle-market companies scale. For more information, visit www.greathillpartners.com