Irish payroll management platform Immedis has been bought by the US human resources, payroll and workforce solutions business, UKG, in a deal understood be worth well in excess of €500m.
Immedis was set up seven years ago by CluneTech, the technology group founded and controlled by Taxback.com founder Terry Clune.
Now Immedis' technology is in use in over 150 countries and operates through 120 different currencies.
The business currently employs 374 people including 100 in Kilkenny where CluneTech is based, as well as in Bulgaria and New Jersey.
Mr Clune set up Immedis after experiencing the challenges of running payroll locally in different territories and timezones, using multiple currencies.
"We established Immedis to help large companies solve their global payroll problems," he said.
"I am incredibly proud of the hard work and dedication of the Immedis team over the past seven years to achieve our goal of becoming a global leader in international payroll service and technology."
While Mr Clune is the majority owner of Immedis, it is understood that all staff in the company will benefit from the sale.
The Irish Strategic Investment Fund is also an indirect investor through its backing of the Scottish Equity Partners (SEP) venture capital and growth equity fund.
Immedis raised €25m in 2019 from SEP, while a year later it raised a further $50m from US based Lead Edge Capital, at a valuation of over €500m.
While financial details around the deal are not being publicly disclosed, industry sources indicated that UKG’s acquisition of Immedis values the Irish company at a premium of more than 10% to that earlier valuation.
Mr Clune described the tie-up between the two firms as the "perfect marriage".
"Joining UKG expands the reach and impact of our ground-breaking technology. It also presents tremendous new opportunities for the exceptional people who make Immedis special," Mr Clune said.
It is expected that the deal will complete within two months, subject to closing conditions being met.
Immedis staff will join the 15,000 employees already working for UKG, who serve around 75,000 customers around the globe through a variety of Human Capital Management (HCM) products.
UKG was established in 2020 with the merger of Ultimate Software and Kronos.
"Having worked closely with Immedis for several years, utilising their technology to help support our customers through a strategic partnership, we are delighted to welcome the team to UKG," said Chris Todd, Chief Executive Officer at the Massachusetts and Florida based company.
"The combination of UKG and Immedis will create the HCM industry's most flexible and intelligent multi-country payroll experience for multinational businesses."
CluneTech was founded in 1996 by Terry Clune and as well as Immedis it now includes TransferMate, Taxback International, Taxback.com, Sprintax, Visa First and Benamic.
The businesses combined currently employ 1,600 people in offices in 21 countries around the world.
Mr Clune said he now intends to continue building out the other companies in the group, as well as to look at new opportunities in both fintech and artificial intelligence.
CluneTech is also currently developing an incubator space at its Kilkenny offices, backed by Enterprise Ireland and UCD Nova, which it hopes will become a fintech centre of excellence for the southeast.