A Boston-based technology investor, Great Hill Partners, has entered a binding agreement to buy employee engagement software company, Reward Gateway, from Inflexion Private Equity. The deal values Reward Gateway at £140 million. The company employs 275 people in six countries, providing HR and reward software as a service to more than 1,100 clients, including American Express, Diageo and McDonalds.
Reward Gateway operates an employee share ownership scheme, with management and staff holding 40% of the equity; the deal with Great Hill Partners triggers a shared payment of £6.5 million to all employees below board level. A typical employee with several years’ service at Reward Gateway will receive an amount similar to their annual salary through participating in the employee share scheme. This is the second time employees have benefited from a change in ownership structure – around 70 employees shared over £1 million in 2010 when Inflexion bought a majority share in the company.