European business software provider Cegid and French payroll and HR platform Silae intend to merge in a deal expected to create a group valued above €10bn ($11.6bn) in enterprise value.
Cegid, founded in Lyon, France in 1983, provides cloud business-management software to small and medium-sized businesses (SMBs) and accounting professionals.
Following its recent acquisition of European fintech Shine, the group also offers business accounts, invoicing, accounting and payroll services to very small businesses and self-employed professionals.
Silae has specialised in payroll and HR management software for 15 years.
Together, Cegid, including Shine, and Silae support two million end-customers and more than 15,000 chartered accountancy firms. The businesses also claim to produce more than 13 million payslips each month across Europe.
Cegid has appointed Christian Pedersen as its chief executive in connection with the proposed transaction. Pedersen joins from AI software provider IFS and will lead the integration, deployment of the joint offering and, subsequently, the combined group.
Pedersen said: “Together as one integrated European platform, we can accelerate innovation and unlock the full potential of AI for customers across interconnected accounting, payment, payroll and HR data.”
The companies intend to connect Cegid’s accounting and tax-production software with Shine’s banking and digital-finance services, alongside Silae’s payroll and HR platform. Potential applications include native links between payroll and accounting software used by chartered accountants, access to Shine products through mySilae, and cash-management and forecasting tools.
Pierre Cesarini will continue to lead Silae within the planned combined company.
Cesarini said: “The real value of this merger lies in the product integration: connecting payroll and HR natively with accounting, e-invoicing, digital finance and payments, so that firms and the businesses they serve work on a single platform with data flowing seamlessly across it while preserving the central role of accountants in their relationships with clients.”
Under the proposed combination, the integrated offering would automate finance and administrative back-office activities and help bring AI tools to European small businesses. The businesses also expect it to assist French SMBs with the e-invoicing reform that entered into force this month, ahead of a more demanding phase in 2027.
Cegid and Silae expect to increase research and development (R&D) investment and bring together a 1,400-strong developer team. Silver Lake, the majority shareholder in both companies, intends to retain majority ownership of the combined group.
The proposed merger is subject to consultation with employee representative bodies and approval from relevant regulatory authorities. Subject to those steps, the companies expect it to close in H1 2027.
