Wednesday 26 June 2019

Immedis value hits €170m in funding deal with UK investor

Skyscanner backer SEP puts €25m into fast-growing Irish payroll company

The SEP investment follows huge growth for Immedis with contracts to handle global wages for big international names including Uber and Harvard University. Stock image
The SEP investment follows huge growth for Immedis with contracts to handle global wages for big international names including Uber and Harvard University. Stock image

Fearghal O'Connor

Irish global payroll company Immedis has raised €25m in a minority equity deal with London-based investment firm Scottish Equity Partners (SEP), the Sunday Independent has learned.

The SEP investment follows huge growth for Immedis with contracts to handle global wages for big international names including Uber and Harvard University.

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The deal values the rapidly growing company at between €160m to €170m, it is understood.

"The demand for our product is such that it drove us down the investment road," said Immedis chief executive Ruairi Kelleher, who credited the company's brand ambassador, golfer Shane Lowry, with "opening some key doors" in Silicon Valley.

Immedis - which is part of Terry Clune's Taxback Group - has experienced compound annual growth rates of at least 80pc to 100pc a year which it expects to continue over the next three years, he said.

SEP manages a £1bn fund that has backed a range of successful European technology companies, most notably travel search firm Skyscanner.

Kelleher said SEP's experience in backing growth companies was the key reason it was chosen as a backer.

"We met up to 15 of the biggest funds in the world and soon realised we were attractive to pretty much all of them so we wanted to find out who was the best fit for us. SEP was phenomenal throughout the process and chemistry was important."

"Cash was not the key driver for the deal and we were in the fortunate position that we did not feel we needed to just opt for the highest bidder," said Kelleher.

"We didn't take on the investment to significantly ramp up a sales and marketing function, we took it on to deliver what we describe internally as 'sustainable hyper-growth'," he said.

Immedis was initially set up by the Taxback Group to simplify the payment of wages to overseas staff for Irish multinational companies such as Glanbia and DCC but it was spun out as a standalone subsidiary of the group in 2016.

The investment deal is just the latest success for Taxback in recent weeks after its Transfermate payments subsidiary last month signed a lucrative deal with Wells Fargo, the third-biggest US bank.

"Our goal is to be the best in the world and we are focused on the big multinationals who employ thousands of people across, on average, 10 different jurisdictions," said Kelleher, who added that the overall sector is worth at least €40bn a year.

Sunday Indo Business

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