ZestMeUp and Supermood Merge to Create SaaS Solutions Leader
Deal News | Mar 18, 2025 | Educapital SAS
ZestMeUp and Supermood, leading names in employee engagement technology, have announced a merger to create a major European player in SaaS solutions focused on employee engagement and performance. The merged entity will serve over 400 clients with 1,000 completed projects and approximately 3 million employees surveyed. Christophe Bergeon, CEO of ZestMeUp, expresses the move as a pivotal step towards simplifying employee management by transitioning from traditional tools to a more integrated, human-centric platform driven by AI, aimed at boosting workforce productivity and satisfaction. The merger brings together Supermood's expertise with large accounts and ZestMeUp's comprehensive Management Tech Suite, allowing the new group to offer a robust solution addressing growing market needs. Strategically, the merger emphasizes innovation and AI at the core of their value proposition, with plans to expand its reach particularly among mid-sized and large companies. Financially, the company anticipates a 50% increase in annual recurring revenue by the end of 2025, with plans for acquisitions in 2026 to bolster its European market presence. Supported by notable investors such as Reflexion Capital and Educapital, and with a recent successful integration of Bloomin, the group's consolidated efforts aim to position them against leading international entities, fostering an environment where employee engagement drives enhanced organizational performance.
Sectors
- SaaS (Software as a Service)
- Human Resource Technology
- Artificial Intelligence
- Management Consulting
Geography
- Europe – Plans for expansion and increased market presence in Europe are central to the merger's strategy.
- France – Both ZestMeUp and Supermood are French companies, and their operations and initial market base are primarily in France.
Industry
- SaaS (Software as a Service) – Relevant as ZestMeUp and Supermood offer SaaS solutions focused on employee engagement and management technology.
- Human Resource Technology – Applicable because the merger is centered around improving employee engagement and performance, key aspects of HR technology.
- Artificial Intelligence – Pertinent as the consolidated entity plans to enhance its offerings using AI to drive employee engagement and productivity.
- Management Consulting – Relevant due to the merger's focus on improving organizational management and embracing new strategies for workforce dynamics.
Financials
- 50% increase in ARR by 2025 – Projected financial growth following the merger as part of strategic objectives.
- 10 million euros in ARR – The medium-term financial target set by the newly merged entity.
- 10% EBITDA by end of 2025 – Expected profitability metric after strategic investments in growth.
Participants
Name | Role | Type | Description |
---|---|---|---|
ZestMeUp | Target Company | Companies | A leader in employee engagement technology aiming for international expansion through its merger with Supermood. |
Supermood | Target Company | Companies | Known for its expertise in large accounts, partnering with ZestMeUp to create a leading entity in SaaS employee engagement solutions. |
Educapital SAS | Private Equity Firm | Companies | A significant investor supporting the merger, indicative of strategic growth in the tech SaaS sector. |
Reflexion Capital | Investor | Companies | One of the notable investors backing the ZestMeUp and Supermood merger. |
Go Capital | Investor | Companies | Financial backer supporting the consolidation move in the SaaS market. |
Citizen Capital | Investor | Companies | Investors aiding in the strategic growth following the merger. |