Providence Strategic Growth (PSG), the growth equity affiliate of asset management firm Providence Equity Partners (Providence), has completed a majority investment in Sympa, a leading provider of cloud-based human capital management (HCM) software in the Nordics.
Alfvén & Didrikson, an active, long-term backer of Nordic businesses with international growth potential, invested in Sympa in 2016 and will retain a minority stake alongside the company’s founding team. PSG team members Edward Hughes, Aldo Mareuse, and Tobias Richter have joined Sympa’s board of directors. Financial terms were not disclosed.
Sympa was founded in 2005 and is now one of the fastest-growing cloud HR suite vendors in the Nordics. Its signature solution, Sympa HR, is a comprehensive HR platform that gives businesses advanced tools for automating a wide range of HR tasks and amplifies the expertise of HCM professionals. PSG’s investment will support Sympa’s next phase of growth focused on product enhancement and strategic M&A to drive expansion across Europe. Co-Founder and CEO Keijo Karjalainen will continue leading day-to-day operations and Sympa’s team of 140 employees in eight offices in five countries.
“We chose to partner with Sympa because we believe it is an outstanding business that will spearhead consolidation in Europe’s HCM software segment,” says Edward Hughes, Managing Director at PSG. “The market is growing rapidly, and companies now demand sophisticated digital HR management tools, which presents a compelling growth opportunity for Sympa. We look forward to working with Keijo and his team to unlock the company’s full potential and accelerate its international expansion.”
Keijo Karjalainen, Co-Founder and CEO, says: “Since founding Sympa, we have been convinced there’s a pent-up demand for more robust HCM software to support the full range of HR processes and unlock data-driven HR. We also identified a critical lack of HR software for mid-market organisations managing international HR operations in all their complexity. Meeting both these needs while always putting the customer first has powered Sympa’s outstanding growth, and with PSG on our side we believe we’re perfectly placed to secure market leadership beyond our Nordic heartland. Right now, the future looks very exciting.”
Sympa currently helps more than 700 organisations, including renowned brands in the Nordics – such as Oatly, BMW, Dustin, and Byggmax – to nurture the development of their employees, operate more efficiently, and make smarter strategic decisions through its fully digital HR solution. Sympa previously won Red Herring’s list of 100 of the most exciting start-ups from Asia, Europe and the Americas.
