Business management software firms Cegid and Primavera sign €7bn merger deal
Cegid, a France-based provider of cloud business management solutions, has agreed to merge with Grupo Primavera in an all-share deal that values the combined firm at around €6.8 billion.
Cegid, which will be the surviving entity after the merger, caters to finance, human resources, retail, certified public accountants (CPAs), and entrepreneurial sectors. The French firm’s 2021 revenues were €632 million.
Upon closing of the deal, Silver Lake, which is currently a majority shareholder in Cegid, will continue in the same role in the combined company.
Pascal Houillon — Cegid CEO said: “Joining forces with Grupo Primavera is an immense opportunity for both companies and our respective clients. Like Cegid, Grupo Primavera offers useful and innovative solutions to partners and customers in the cloud, and has achieved impressive growth specifically across Spain, Portugal, and Africa.
“We share an inspiring vision for the future driven by continuous product and technology innovation, and Cegid is fully committed to investing in the combined company’s continued growth. We look forward to working closely with Santiago and the talented team at Grupo Primavera to bring value to a more global customer base.”
Grupo Primavera, which has a workforce of 800 people, had a revenue of €76 million in 2021. The Spanish firm provides a range of cloud-based software solutions covering invoicing, accounting, and enterprise resource planning (ERP).
Santiago Solanas — Grupo Primavera CEO said: “We are strongly aligned with Cegid’s vision and ambition and have long admired the company. Like Cegid, we have an entrepreneurial and passionate culture with a focus on product excellence, a commitment to customers, and an exciting vision for growth.
“This is a powerful partnership that will allow us to combine resources and expertise, bringing customers new products and continued innovation, as well as building on our proven track record to expand and integrate new talent and approaches to market needs. Both Cegid and Grupo Primavera share a mission to grow our ecosystem and to offer our combined customers, channel partners, colleagues, and communities renewed value.”
The deal, which is subject to certain conditions, is expected to be wrapped up in Q3 2022.