Warburg Pincus Acquires Minority Stake in Contabilizei for $125 Million

Investment highlights next phase of growth for the accounting technology services company

São Paulo, Brazil, October 14, 2024 – Contabilizei, a leading accounting firm in Brazil, today announced a $125 million investment from Warburg Pincus, a leading global growth investor. Founded in 2013, Contabilizei automates accounting services, focusing on small businesses and self-employed professionals. Contabilizei currently serves more than 50,000 clients, operates at break-even, and generated total revenue exceeding R$ 300 million.

With this transaction, Warburg Pincus is the largest shareholder of Contabilizei, acquiring stakes from venture capital funds that had invested in Contabilizei starting in 2014, including Kaszek.

Contabilizei’s main service is providing free company registration and accounting services with a 99% automated process to calculate and pay taxes, fulfill tax obligations, and handle accounting records for micro and small businesses, as well as self-employed individuals. This is done considering various geographical and sector-specific realities, as tax regulations differ depending on the state, municipality, and industry. The company also offers an integrated bank account solution that links to its accounting services, a key differentiator to simplify its clients’ financial routines. Recently, it began offering health plans, creating a comprehensive platform for micro and small business owners.

“Contabilizei strengthens Warburg Pincus’ thesis of investing in scalable technology companies in sectors that still have low technology adoption and growing demand. We see great potential in the company, especially in a market still dominated by manual processes, with ample room for automation and the use of artificial intelligence. Additionally, there is significant room for further monetization through the expansion of financial services offered on the platform,” says Bruno Maimone, Managing Director, Warburg Pincus. “The investment in the company is also aligned with our global strategy, as we have a long history of investing in companies in the tax automation space in the United States, such as Avalara and Chipsoft.”

According to Vitor Torres, CEO and founder of Contabilizei, the entry of Warburg Pincus is another important validation of the company’s cash-generation-focused growth strategy over the past few years. “In a highly fragmented market, dominated by traditional companies relying on manual processes, we have reached more than 50,000 clients thanks to the superior quality of our services, increased efficiency through time savings, and, most importantly, offering the complete range of services that entrepreneurs need,” he says.

“More than just accounting and tax payments, small business owners and freelancers have many other management needs. For this reason, we also offer business checking accounts, financial services, health plans, and important partnerships to even support the physical and mental health of entrepreneurs. Our focus is to increasingly meet the needs of small business owners through a seamless journey on our platform, empowering them with better management, efficiency, and financial health. We are working hard to ensure Contabilizei continues its high growth rate in the coming years and maintains its delivery of high-quality, trustworthy services to help small business owners succeed. Warburg Pincus has extensive experience supporting high-growth companies in scaling within their markets, and we are confident this will be crucial for our next phase of growth,” adds the CEO.

“We are very excited to collaborate with Warburg Pincus in this next phase of Contabilizei’s growth. We share their conviction in the thesis and in Vitor’s ability to execute. We are pleased to continue being part of this journey,” says Rodrigo Costa, partner at Softbank Latin America Funds.

With the investment in Contabilizei, Warburg Pincus now has a portfolio of 11 Brazilian companies, 8 of which are in the technology sector.

About Warburg Pincus

Warburg Pincus LLC is a leading global growth investor. The firm has more than $83 billion in assets under management. The firm’s active portfolio of more than 225 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Since its founding in 1966, Warburg Pincus has invested more than $117 billion in over 1,000 companies globally across its private equity, real estate, and capital solutions strategies. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com. Follow us on LinkedIn.

About Contabilizei

Contabilizei is the largest accounting firm in Brazil, serving over 50,000 clients. It is a leader in company formation and CNPJ management, offering complete, exclusive, and integrated solutions in one place for micro and small entrepreneurs, as well as self-employed professionals. Founded in 2013, Contabilizei offers cutting-edge technology and the expertise of more than 1,200 specialists across various fields to provide reliable accounting services, free company formation, business checking accounts, and health and wellness benefits for entrepreneurs.

IK Partners (“IK”) is pleased to announce that the IK Partnership III (“IK PF III”) Fund has reached an agreement to acquire a minority stake in OCTIME Group (“OCTIME” or “the Group”), a leading French software developer of workforce management solutions. IK will acquire its stake from existing shareholders, including Group President Guillaume Berbinau, Andera Partners (“Andera”) and the management team, who will all be reinvesting. Guillaume Berbinau, President of OCTIME Group since 2008, remains the majority shareholder. He relies on Nicolas Michel-Vernet, Managing Director of the Group and his management team who see their position strengthened. Financial terms of the transaction are not disclosed.

Founded in 1999 and headquartered in Biron, France, OCTIME Group is a software company which provides a comprehensive range of solutions for time management and human resource planning. The Group supports over 7,000 small to medium-sized enterprises across a diverse range of sectors and countries in the digitalisation of their human resource processes.

OCTIME’s products enable organisations to track and manage workforce performance, including time, attendance, scheduling and task management. With an international presence and approximately 300 employees, the Group has a strong position in France and operates through subsidiaries in Spain, Portugal and Latin America. Since inception, the Company has demonstrated sustained organic growth and resilience, driven by the consistent acquisition of new clients and very low churn.

Alongside Andera and Guillaume, IK will work with OCTIME’s Managing Director Nicolas Michel-Vernet and his management team to continue building its leadership position in the time management space through the acquisition of new clients within relevant sub-sectors. The Group also plans to strengthen its international presence through the pursuit of an active buy-and-build strategy focused on European neighbouring countries.

Guillaume Berbinau, President of OCTIME Group, commented: “I am very proud of the trajectory of the OCTIME Group, which has managed to retain its DNA, expertise and commitment, while achieving exemplary growth. We owe this success to the strength of our team. I am convinced that the team at IK will be committed partners in supporting and accelerating our future growth plans.”

Magdalena Svensson, Partner at IK and Advisor to the IK PF III Fund, said: “Under the leadership of Guillaume, Nicolas and their team, OCTIME has established itself as a leading French software as a service developer in the time management and planning space. We look forward to working with Guillaume, the management team and Andera Partners in the next phase of the Group’s growth.”

David Robin, Partner at Andera, added: “The development driven by the management team in recent years has enabled the OCTIME Group to become a benchmark player in its market, offering best-in-class solutions to a loyal and diversified customer base. We are delighted and proud of the progress we have made alongside Guillaume, Nicolas and the entire management team.”

For further questions, please contact:

IK Partners
Vidya Verlkumar
Phone: +44 7787 558 193
vidya.verlkumar@ikpartners.com

Andera Partners
Nicolas Delsert
Phone: + 33 6 22 67 71 17
n.delsert@anderapartners.com

Mentha is selling its majority stake in paraDIGMA group to Castik Capital. paraDIGMA group, active in the field of employee health & wellbeing, has grown considerably in recent years in collaboration with Mentha, founder Rudo Vissers and the wider management team. Now the group will be owned by Castik Capital and will take the next step in the strategy and growth plan, under the leadership of the current management.

Through various companies, paraDIGMA group focuses on sustainable employability within organisations, by offering curative and preventive services aimed at the health, well-being, and job satisfaction of employees. The largest division of the group, De Arbodienst, adopts a progressive approach aiming towards prevention. The focus is on creating a healthy organizational culture and working on personal leadership with the objective to actively reduce absenteeism. In addition, it offers related services such as vitality policy, reintegration issues, psychological or physical guidance and training and development. All with the common goal: improved health, more job satisfaction and enthusiasm and less absenteeism in the Dutch working population.

The collaboration with Mentha started in 2020 and resulted in a professionalization and growth surge for the organization. The number of employees has quadrupled, and national coverage has been achieved through an office network with nine locations spread across the Netherlands. In addition to strong growth through expansion of the organization and attracting new customers, various acquisitions have expanded the service offering of the paraDIGMA group. Now is the time to look ahead to the next phase, including exploring opportunities abroad.

Barend Rutten of Mentha comments: “It was a great pleasure to work together with Rudo Vissers, Peter Kruissen, the wider management team and all the talented employees. We have worked extremely hard over the past four years to build the organization into what it is today: a sizable, unique player in the Netherlands. We now confidently transfer the organization to Castik Capital, the right partner for paraDIGMA group. We wish Castik and paraDIGMA group all the best for the future.”

Peter Kruissen, CEO paraDIGMA group adds: “Together with Mentha, we have grown rapidly in the past few years and taken significant steps in professionalisation. Now it is time for the next phasestep. I am confident that we will achieve this together with Castik Capital.”

The sale is subject to approval from the Dutch Healthcare Authority (NZa) and the Dutch Authority for Consumers and Markets (ACM).

“I am very pleased to welcome Nomadix and Global Reach into the ASSA ABLOY Group. This acquisition is an exciting technological addition to the ASSA ABLOY Group and will reinforce our current offering within the hospitality business, and provide complementary growth opportunities,” says Nico Delvaux, President and CEO of ASSA ABLOY.

“Nomadix and Global Reach are excellent additions to Global Solutions and will with their strong technical expertise expand our portfolio and end-to-end offering for our hospitality business and adjacent verticals. I look forward to working with the experienced teams to continue the successful journey,” says Stephanie Ordan, Executive Vice President and Head of Global Technologies business unit Global Solutions.

Nomadix and Global Reach were founded in 1998 and have some 120 employees. The main offices are located in Los Angeles and London. Nomadix and Global Reach operate as two separate entities under a central top management and ownership, and will be part of Global Solutions business area Hospitality.

Sales for 2023 amounted to about MUSD 30 (approx. MSEK 300) with a strong EBIT margin. The acquisition will be accretive to EPS from the start.

The acquisition is subject to customary closing conditions and is expected to close during the second quarter of 2024.

For more information, please contact:

Nico Delvaux, President and CEO, tel. no: +46 8 506 485 82
Erik Pieder, CFO and Executive Vice President, tel. no: +46 8 506 485 72
Björn Tibell, Head of Investor Relations, tel. no: +46 70 275 67 68, e-mail: bjorn.tibell@assaabloy.com

About ASSA ABLOY

The ASSA ABLOY Group is the global leader in access solutions. The Group operates worldwide with 61,000 employees and sales of SEK 141 billion. The Group has leading positions in areas such as efficient door openings, trusted identities and entrance automation. ASSA ABLOY’s innovations enable safe, secure and convenient access to physical and digital places. Every day, we help billions of people experience a more open world.

Onex Corporation (“Onex”) (TSX: ONEX) today announced that Onex Partners V has completed a majority investment in Morson Group (“Morson” or the “Company”), a leading UK engineering and technical staffing and workforce solutions business, with growing operations in the UK, U.S., Italy, Canada and Australia. The investment has been made alongside the founding family CEO Ged Mason and members of the management team. Financial terms were not disclosed.

Headquartered in Manchester, United Kingdom, Morson Group provides services including: (i) contingent workforce solutions, relating to the placement of engineering, IT and technical contractors with customers, (ii) permanent recruitment and recruitment process outsourcing (RPO), (iii) related planning workforce support management and training, and (iv) engineering consultancy and design services. With a history stretching back over 55 years, the Company employs more than 1,500 people in over 60 locations, with a vision to create a better, more innovative world through inspiring, supporting, reskilling, and nurturing talent. Morson deploys specialist recruitment and engineering expertise on STEM skills in its focus sectors of aerospace, defence, IT and technology, rail, marine, nuclear, multi-disciplined engineering, professional services, construction, and manufacturing.

“Morson’s ability to deploy unique sector knowledge and innovative solutions to its clients in highly resilient sectors of the economy is unique. We are attracted by its growth profile, corporate culture and multiple opportunities for value creation going forward. Most importantly, we are delighted to be partnering with Ged Mason and the management team, to continue building on what they have accomplished,” said Nigel Wright, Co-Head of Onex Partners. Adrien Faure, a Managing Director of Onex Partners, added “Morson is an excellent business and a leader with pedigree in its core markets. The investment aligns with our theme of investing in businesses that help to solve the need for technical and specialist skills alongside the best management teams. It builds on our track record in the broader human capital management sector.”

Ged Mason, who will continue as CEO of Morson Group, said “We have found a true partner in Onex, and a team whose values are aligned with ours. Onex shares our vision. It has an impressive track record of helping companies to grow and we are confident about the contribution our new partner will make to achieving our goals.”

About Onex

Onex is an investor and asset manager that invests capital on behalf of Onex shareholders and clients across the globe. Formed in 1984, we have a long track record of creating value for our clients and shareholders. Onex’ two primary businesses are Private Equity and Credit. In Private Equity, we raise funds from third-party investors, or limited partners, and invest them, along with Onex’ own investing capital, through the funds of our private equity platforms, Onex Partners and ONCAP. Similarly, in Credit, we raise and invest capital across several private credit, public credit, and public equity strategies. Our investors include a broad range of global clients, including public and private pension plans, sovereign wealth funds, insurance companies and family offices. In total, Onex has US$49.7 billion in assets under management, of which US$8.1 billion is Onex’ own investing capital. With offices in Toronto, New York, New Jersey, Boston and London, Onex and its experienced management teams are collectively the largest investors across Onex’ platforms.

Onex is listed on the Toronto Stock Exchange under the symbol ONEX. For more information on Onex, visit its website at www.onex.com. Onex’ security filings can also be accessed at www.sedarplus.ca.

About Morson Group

Morson Group is a leading provider of complete talent solutions, offering services across contingent workforce, design consultancy, and permanent recruitment through a variety of delivery models. The Company’s proprietary technology underpins managed service provider (MSP) and recruitment process outsourcing (RPO) offerings alongside other service models. Morson employs over 1,500 people in more than 60 locations in the UK, Australia, the United States, and Canada. With revenues in excess of £1.3 billion, Morson is ranked by SIA as the world’s third largest engineering and technical staffing business.

Disclaimers

This press release may contain, without limitation, statements concerning possible or assumed future operations, performance or results preceded by, followed by or that include words such as “believes”, “expects”, “potential”, “anticipates”, “estimates”, “intends”, “plans” and words of similar connotation, which would constitute forward-looking statements. Forward-looking statements are not guarantees. The reader should not place undue reliance on forward-looking statements and information because they involve significant and diverse risks and uncertainties that may cause actual operations, performance, or results to be materially different from those indicated in these forward-looking statements. Except as may be required by Canadian securities law, Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors. These cautionary statements expressly qualify all forward-looking statements in this press release.

For Further Information:

Onex

Jill Homenuk

Managing Director – Shareholder Relations and Communications

JHomenuk@onex.com

+1 416.362.7711

SAN FRANCISCO & RICHMOND, Va.–(BUSINESS WIRE)–Golden Gate Capital, a San Francisco-based private equity firm, in partnership with Founder and CEO Gil Grattan, today announced the recapitalization of Virginia Green (“the Company”), the leading provider of lawn care in Virginia. Mr. Grattan will continue to lead the Company as CEO and will remain a significant shareholder. Terms of the transaction were not disclosed.

Founded in 2004, Virginia Green is a premier operator of residential lawn treatment services with a growing footprint of ten locations and 70,000 customers across key local markets. The Company offers personalized residential and commercial lawn treatment services through a flexible subscription-based model, underscored by its recognizable brand name in Virginia. Golden Gate Capital’s strategic investment will build on Virginia Green’s long track record of growth and support the Company’s expansion into existing and new adjacent geographies using its proven, scalable playbook built around an exceptional customer experience.

“Our rapid growth is a testament to the comprehensive lawn care offering and tremendous team we have built that provide superior results and unmatched customer satisfaction,” said Mr. Grattan. “I am pleased to be collaborating with Golden Gate Capital and believe their expertise in scaling industry-leading platforms makes them the perfect partner to accelerate the growth of our business in Virginia and beyond.”

Mike Montgomery, Managing Director at Golden Gate Capital, said, “Virginia Green is one of the largest and fastest growing lawn care companies in the country, and an established leader in the lawn treatment sector. The Company’s strong track record of consistent growth is truly remarkable, and the extraordinary customer satisfaction they deliver provides an ideal platform for future expansion. We are thrilled to support the Company as it continues to extend its reach.”

Neale Attenborough, Managing Director at Golden Gate Capital, added, “We are proud to partner with Gil and the talented Virginia Green team, and have deep respect for the company and culture Gil has built. We look forward to building upon Virginia Green’s already attractive customer acquisition and retention model as we expand the franchise into new geographies.”

Harris Williams served as financial advisor and Williams Mullen served as legal advisor to Virginia Green. TD Cowen served as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Ropes & Gray LLP served as legal advisors to Golden Gate Capital.

ABOUT VIRGINIA GREEN

Virginia Green opened for business in 2004 and has grown rapidly employing over 300 associates, including an in-house agronomy team and dedicated customer service representatives focused on delivering 100% client satisfaction. We provide comprehensive commercial and residential lawn care services throughout Virginia including Central Virginia, Northern Virginia, Northside Hampton Roads, the Shenandoah Valley and the New River Valley. Virginia Green is a leader in the lawn care industry by providing the highest quality services, utilizing the best products and associates to deliver fantastic customer lawns and landscapes. Virginia Green prides itself on having an industry leading retention rate at greater than 87%. Virginia Green was ranked #1 in “Best Lawn Service/Landscaping” in a Richmond Times-Dispatch poll four times in the last five years.

ABOUT GOLDEN GATE CAPITAL

Golden Gate Capital is a San Francisco-based private equity firm with over $19 billion in cumulative committed capital. With a long-term investment philosophy, the principals of Golden Gate Capital have a long history of investing across a wide range of industries and transaction types, including going-privates, corporate divestitures, and recapitalizations, as well as debt and public equity investments. For more information, visit www.goldengatecap.com.

Contacts

For Golden Gate Capital
FGS Global

Chloe Clifford / Bridget Nagle
GoldenGate@FGSGlobal.com