PE Tech Report


Like this article?

Sign up to our free newsletter

Palatine Impact invests in e-days

Palatine Impact has completed a significant investment into e-days, a provider of employee absentee management software.

This is the second deal from Palatine Private Equity’s Impact Fund, a GBP100 million investment vehicle targeting growth companies that also deliver a positive social and/or environmental impact. It also marks the third successful deal completion in the Midlands, following the opening of Palatine’s Birmingham office in December 2015.
Formed in 2005, e-days is an employee absence management tool designed to help customer organisations improve operational efficiency and reduce absenteeism. Provided through a software as a service (SaaS) model, the tool accurately manages, processes and tracks employee leave and sickness, providing absence analytics to help managers deliver efficiency gains across their organisation. The company has more than 175,000 users and has customers in over 80 countries.
It is estimated that 131 million days are lost to sickness absence in the UK per annum, costing the economy circa GBP17 billion. The CIPD (Chartered Institute of Personnel and Development) estimates that circa 50 per cent of organisations are currently in a position where employee holiday and absence is not calculated or managed effectively meaning the opportunity for specialist solutions such as e-days is significant.
The deal was led by partner and Head of the Impact Fund Beth Houghton and investment director James Gregson, with support from investment manager Tom Hustler. Both Houghton and Gregson will join the e-days board as the business looks to develop its employee wellbeing offering.
Steve Arnold, CEO at e-days, says: “The Palatine Impact Fund is the perfect investment partner for our fast-growing business, given the focus on positive social impact. The e-days solution has wide market appeal and already helps over 1,000 companies to better manage and track their employee leave and wellbeing. The Palatine investment will help us accelerate our market penetration, whilst continuing to enhance the product offering for the benefit of our customers and their employees.”
Beth Houghton, Partner at Palatine Impact, says: “The e-days software helps companies to enhance employee wellbeing and improve absentee rates. By analysing staff sickness data, the software helps companies to become more responsible, as well as identifying underlying trends to pre-empt future absence. e-days is exactly the type of business we set out to support with our new Impact Fund, and we look forward to working alongside the management team in the coming months.”
Carl Houghton and Richard Ellis from Clearwater International advised on the transaction. Chris Heatlie and Rob Dawes at BDO provided financial due diligence, while Tom Fletcher and Mike Hallett of CIL provided commercial due diligence and Mike Stiles of The Quinn Partnership provided management due diligence. Legal advice for Palatine came from Ragi Singh, Victoria Pearson and Stephen Bowman at Gowling in Birmingham, while Mark Hughes from Browne Jacobson advised management. Management and vendor tax advice was provided by Simon Browning at UHY Hacker Young.

Like this article? Sign up to our free newsletter