KKR buys $95m stake in Employment Hero from Seek Investments
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The news: Global investment firm KKR has acquired a stake in Australian HR software unicorn Employment Hero from Seek Investments, marking its latest technology growth investment in Australia.
The numbers: Seek Investments, the venture fund of listed job listings platform Seek, said its growth fund will receive $95 million from the transaction, with Seek's share of proceeds to be around $79 million.
Seek said this implies a valuation for Employment Hero that is approximately 19% above the valuation recorded in the growth fund’s accounts at 30 June 2024.
The context: Seek said the transaction is expected to settle by March 2025, after which the fund will retain a "meaningful stake" in Employment Hero. Seek will allocate the proceeds to reduce debt.
The secondary share acquisition by KKR marks its latest growth equity investment in Australia, following its investment in AI robotics and navigation technology company Advanced Navigation.
What they said: "Employment Hero marks our latest technology growth investment in Australia, a key market for our growth equity strategy, and aligns with our thematic focus on SMB (small and medium business) software,” said Mukul Chawla, partner and head of Asia Pacific growth equity at KKR.
"We look forward to supporting the continued platformisation and international expansion of Employment Hero, which has established itself as a leader in human resources management in multiple markets including Australia, the UK, and Canada with its cloud-native and comprehensive product suite," he said.
Employment Hero CEO and co-founder Ben Thompson said: "KKR’s significant experience, resources and network will be extremely valuable in our efforts, particularly as we look to further develop our international footprint."
Andrew Bassat, executive chairman and CEO of Seek Investments, said: "The Seek Growth Fund has been a long-term investor and supporter of Employment Hero. We retain our high conviction towards Employment Hero’s strategy and outlook. We look forward to continuing our partnership with Ben and working with KKR to help Employment Hero realise its full potential."
The sources: KKR media release, ASX announcement
