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Private Equity Firm Perwyn to Sell Interact Software to Castik Capital

London, United Kingdom - Private equity firm Perwyn has agreed to sell Interact Software, a leading provider of cloud-based employee experience and collaboration software, to funds managed by Castik Capital, another private equity group, according to people familiar with the matter.

The transaction, whose financial terms were not disclosed, marks Perwyn's exit from Interact after investing in the company in 2018. The deal underscores the continued strong investor appetite for enterprise software businesses that have benefited from the shift to remote and hybrid work models during the pandemic.

"Interact has established itself as a best-in-class employee experience platform, helping organizations foster stronger connections and collaboration among their distributed workforces," said a source close to the negotiations. "This transaction allows Perwyn to realize a successful return on its investment, while positioning Interact for its next phase of growth under Castik's ownership."

Interact, headquartered in the UK, offers a suite of tools that enable companies to streamline internal communications, facilitate knowledge sharing, and enhance employee engagement. The company has seen robust growth in recent years, with its cloud-based software now used by over 1,000 organizations globally.

The acquisition by Castik Capital, a European private equity firm with €3.5 billion in assets under management, is expected to provide Interact with additional resources and expertise to accelerate product development and expand its customer base internationally.

"Interact has built an impressive platform that addresses a critical need for companies navigating the shift to hybrid work," said a Castik Capital spokesperson. "We look forward to partnering with the Interact team to capitalize on the significant market opportunity and drive the company's next stage of growth."

The deal comes amid heightened investor focus on the enterprise software sector, which has witnessed a flurry of M&A activity as firms seek to bolster their digital transformation capabilities. Recent transactions include Thoma Bravo's $12.3 billion acquisition of Anaplan and Broadcom's $61 billion purchase of VMware.

Analysts say the Interact transaction reflects the premium valuations currently commanded by cloud-based software businesses that demonstrate strong revenue growth, high customer retention, and compelling unit economics.