Focus on Edenred's acquisition of Reward Gateway
Edenred makes the biggest acquisition in its history with the purchase of Reward Gateway for 1.3 billion euros. Edenred had already proposed to buy Reward Gateway in 2020.
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The activities of the two groups
Founded in 2010 and headquartered in France, Edenred is the digital services and payments platform that supports the world of work on a daily basis. Well-known for its special-purpose payment cards dedicated to food (such as meal vouchers), the company also offers innovative solutions dedicated to motivation (such as gift cards, employee engagement platforms), mobility and professional payments.
In 2022, thanks to its global technological assets, the Group managed a business volume of around 38 billion euros.
Edenred in figures:
- 160,000 corporate and public authority customers
- 7 million employee users
- 400,000 merchant partners
Founded in 2006 in the UK, Reward Gateway, the leading employee engagement platform, offers a unified suite of modules ranging from employee discount offers and rewards and recognition solutions to wellness solutions and corporate social animation. These innovative solutions enable the HR departments of client companies to offer the best combination of engagement tools for their employees.
In recent years, Reward Gateway has recorded continuous double-digit revenue growth, combined with strong profitability. In 2023, the company expects to generate sales of £95 million (€109 million).
Edenred expands its offering with the acquisition of Reward
Edenred has announced the acquisition of Reward, the leading employee engagement platform, with strong positions in the UK, Australia and the USA. Indeed, Reward has a strong presence in these regions, with over 4,000 customers and 8 million employees using its solutions. All in all, the acquisition of Reward for £1.15 billion (€1.33 billion) will enable Edenred to considerably broaden its offering, providing HR managers with a complete range of solutions enabling them to enhance the attractiveness of their organization to attract and retain the best talent. This acquisition also enables Edenred to penetrate promising new high-growth markets such as the United States and Australia.
For the first quarter of 2023, Edenred reported a 26.8% increase in total revenues to 557 million euros.
Expand Edenred's value proposition in the employee engagement market
With the acquisition of Reward Gateway, Edenred gains access to an already important market with strong penetration potential and additional development opportunities. Indeed, the employee engagement market is a fast-growing one.
In 2022, according to a survey of 1,031 decision-makers carried out by Infopro Digital Études for L'Usine Nouvelle and Bodet Software, consolidating employee commitment will remain a priority for companies.
With the covid crisis, the acceleration of teleworking and the war for talent, HR managers are relying more on differentiating factors such as employee benefits and engagement solutions. In addition, the growing emphasis on purchasing power issues has considerably boosted interest in employee discount solutions.
In addition to the fact that Edenred will be able to expand its offer with the acquisition of Reward, this acquisition will considerably increase the market addressed by the Group, as well as its operating sales. Indeed, cross-selling opportunities with existing customers of both companies will contribute to strengthening commercial synergies. What's more, thanks to a digital platform model offering quality solutions, the enhanced user experience will further strengthen customer loyalty.
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