Reward Gateway merges with Xexec

The ‘Great Resignation’ is forcing employers to rethink their employee experience, as well as pay, perks and benefits if they want to successfully retain and attract employees.

Therefore, it is no surprise that employee engagement tech is booming right.

The latest update comes from global Software-as-a-Service platform Reward Gateway and its merger with London-based employee reward and recognition platform Xexec for an undisclosed sum.

This merger follows on from both Reward Gateway and Xexec being acquired by private equity leaders Abry Partners and Castik Capital in May last year.

Talking about the Reward Gateway deal, Castik Capital partner Michael Phillips added: “As the world begins to return to a new normal, employee engagement will only become more important.

“Companies must navigate the complexities of in-person, remote and hybrid workforces, which will create an entire new set of challenges for HR professionals that Reward Gateway is well positioned to help solve.”

Abry Partners and Castik Capital acquired a majority stake in Xexec with founders and co-CEOs Jacqueline Benjamin and Saul Meyer.

Benjamin and Meyer said: “Castik and Abry are the ideal partners that truly appreciate the company’s culture and have a profound knowledge of the industry.

“The partnership will allow us to better serve our clients bringing enhanced engagement solutions and additional resources, in particular for sales & marketing, as we continue to expand our business and pursue bolt-on acquisitions as part of our strategy to accelerate growth.”

Phillips continued: “We are thrilled that Xexec will be joining our family of portfolio companies and to have this opportunity to work closely with the founders, Jacqueline and Saul. We are impressed by their journey and look forward to accelerating and promoting Xexec’s ongoing success”

The future of employee engagement

This new merger further drives the pair’s focus on employee engagement and experience.

Talking about the deal, Reward Gateway CEO Doug Butler commented: “The unprecedented events of the past two years have forced organizations to rethink how to best attract, engage and retain their people within flexible and hybrid work environments.

“By combining operations with Xexec, we can deliver a broader suite of innovative and expanded employee engagement solutions and resources to our clients around the globe.”

Benjamin and Meyer added: “Reward Gateway’s reputation as a leader and innovator in the employee engagement industry is well established.

“It is a testament to our people, heritage and growth that we are able to join forces with Reward Gateway at this critical time, and it represents a tremendous opportunity for our clients and our employees.”

It remains unclear what the deal will mean for Reward Gateway’s and Xexec’s employees and their workflows as the companies merge their operations.