Welcoming CVC in 3 questions
The arrival of leading investment manager CVC as a minority shareholder in SD Worx was a milestone not only for 2023 but also for our corporate history. For the first time in our almost 80 years of existence, our company welcomed an external shareholder, and not just any investor. We are grateful for this first-class cooperation, which brings a wealth of experience to the table and strengthens our corporate governance as well. To highlight how and why, let’s delve into 3 frequently asked questions:
Why was SD Worx looking for an external investor?
A: SD Worx has grown exceptionally quickly over the last decade. From a mainly local payroll organisation, we have become one of the most trusted leading HR and payroll solutions providers in Europe for both organisations and workers. Our headcount and revenue have almost quadrupled, and our geographical presence and portfolio have multiplied many times over.
We have achieved this kind of growth organically and through acquisitions as a company without external shareholders. However, with CVC on board, we will accelerate the realisation of our ambitious European growth plans and take our customer experience to the next level.
Why did CVC decide to invest in SD Worx?
A: CVC is a leading investment manager with a proven track record in supporting companies in their growth journey. They have a wealth of experience in the HR and payroll sector and a strong network of experts and partners. CVC’s investment will help us to further strengthen our market position, accelerate our growth, and enhance our customer experience.
Moreover, CVC’s investment will enable us to invest in our people, technology, and services, and to continue to innovate and expand our product portfolio. This will allow us to better serve our customers and to further grow our business.
What is the impact of an external shareholder?
A: Beyond the financial side, the added value of a diverse governance model is even more important: as an external shareholder, CVC brings a unique perspective to our business, acts as a positive challenger on the Board and helps define strategic next steps. Being able to rely on such an experienced partner – CVC is a top-5 global private equity player – gives an extra boost and confirmation that we are and continue to be on the right track.
As WorxInvest is still our majority shareholder (77.5%), SD Worx remains an independent company with strong roots. Our customers and employees will only benefit from such a solid foothold.