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  • Updated 35 mins ago

Private equity-backed Ascender snaps up human resources business

The deal would create one of the leading HR and payroll software businesses in the region.
The deal would create one of the leading HR and payroll software businesses in the region. Michele Mossop

5v Capital-backed payroll outsourcing company Ascender has agreed to buy the local business of NGA Human Resources, in a deal valuing the combined entity at about $500 million. 

It's understood that the privately-owned Ascender has told investors the acquisition would create the market leader in human resources and payroll software and services in the Australia and New Zealand region, with more than 3000 clients and 1.7 millon employees. 

Ascender was founded in 2003 and was acquired in 2015 by a consortium led by Potentia and including 5v Capital. 

5v Capital is the firm founded by former CVC Asia Pacific dealmaker Adrian MacKenzie and Archer Capital's Andrew Gray and Rishabh Mehrotra.

Their latest acquisition builds on one of their first deals - the acquisition of a payroll outsourcing business from Talent2 International. 

Gray is now managing director of Potentia and chairman of Ascender's board.

NGA is a provider of global HR services. It's understood a Goldman Sachs team headed by Joe Fayyad advised NGA.