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Inflexion invests in Asperity Employee Benefits

Inflexion Private Equity, the mid-market private equity investor, today announces that it has completed the £25.5m buyout of Asperity Employee Benefits, the UK market leader in flexible employee benefit programmes.

With over 500 clients, Asperity’s technology powers employee discounts; salary sacrifice schemes; total reward systems; and reward and recognition programmes. Well over £150 million of retail spend flows through the platform annually making Asperity the largest closed user group in the UK and therefore commanding the biggest buying power. Clients include BSkyB, Aviva, Ladbrokes, Kent County Council and TUI Travel. Asperity provides benefit programmes through its white-labelled and employer branded internet based platform, to which employees login to access exclusive benefits. Asperity has a range of deals with hundreds of retailers, offering reduced price merchandise.

The business has grown strongly since inception with revenue more than tripling since 2007. Current growth momentum continues both by volume and average revenue per transaction and the business is on track to deliver EBITDA growth in 2011 which will more than double that achieved in 2010. Inflexion will work with Asperity to continue this growth by exploiting the significant UK market opportunity as well as accelerating the company’s international presence.

John Hartz, Managing Partner of Inflexion Private Equity commented: “Asperity is an excellent example of the type of business that Inflexion seeks to invest in: a leader in a niche market which delivers superior service to its customers, is growing significantly and has a dynamic management team who are ambitious for its future. We look forward to working with Glenn to grow the business further in the UK and overseas.”

Glenn Elliott, Founder and Managing Director of Asperity said: “Inflexion’s investment will provide us with the financial and business muscle that will help us to continue to shape employee benefits markets over the next few years. We’ve conducted a comprehensive search for the right partner to help develop internationally and the team at Inflexion has demonstrated fantastic experience and a great track record that we’re really keen to be part of.”

Simon TurnerChristian HamiltonGareth Healy and Nicola Boyd led the transaction at Inflexion. Christian Hamilton and Simon Turner will join the Board as Non Executive Directors. Inflexion was advised by Ingenious Corporate Finance.