PSG, a growth equity firm that focuses on partnering with middle-market software and technology-enabled services companies, has acquired a majority stake in billwerk, a European provider of subscription management and recurring billing software solutions.
The billwerk subscription management platform offers European companies across industries a one-stop shop to manage their subscription business. Its scalable and open, multi-cloud platform is designed to provide flexible solutions to fully automate a company’s recurring subscription processes as a part of an integrated solution approach.
Founded in 2015, billwerk has more than 40 employees across its headquarters in Frankfurt, Germany, and offices in Minsk, Belarus and Gdansk, Poland. Its subscription management software solutions are currently used by several hundred fast-expanding start-ups as well as midsize and enterprise customers across Germany, Switzerland and France, with a growing presence in other European regions including the Nordics and Benelux.
Following the transaction, the company will continue to be led by its Co-Founder Dr. Ricco Deutscher, continuing in his role as CEO. PSG intends to support billwerk’s international growth plan both organically and via strategic M&A activity.
“We believe that billwerk’s position as a European leader in the subscription management space is driven by a superior product that seeks to ensure a company’s compliance with strict European regulatory standards,” says Dany Rammal, Managing Director and Head of PSG Europe. “The fragmented European subscription management market is still in its nascency, and we believe that billwerk is well-positioned to benefit from the growing uptake in the use of subscription management tools as companies shift their business models online. We look forward to working with Ricco and the team in supporting the next phase of billwerk’s development,” noted Romain Railhac, Director at PSG.
billwerk’s Co-Founder and CEO Dr. Ricco Deutscher, adds: “We believe we have found the perfect partner in PSG based on their unique focus and experience in partnering with founder-led software companies and supporting their growth throughout Europe, and beyond. We’re excited to work with the PSG team as we identify new opportunities to scale our business.”
PSG’s investment in billwerk is the ninth platform investment made from the firm’s inaugural Europe-focused fund, PSG Europe, which held a final close with EUR1.25 billion in third-party limited partner commitments in January 2021. It follows the recent acquisition of a majority stake in Nalanda Global, announced in April 2021, as well as other platform investments in Hornetsecurity, Imaweb, MAPAL Group, Nomentia, Signaturit Solutions, SKEEPERS and Sympa.
The financial terms of the transaction have not been disclosed, and its completion is subject to the receipt of regulatory approval.