2.4x / IRR 20%
Provision of incentive programmes
cadooz was a major player in the German gift certificate service sector, operating a high quality IT platform which handled around 300,000 gift certificates each year for its customers.
The provision of choice-based gift vouchers as part of corporate incentive and rewards programmes experienced rapid growth in the mid 2000s, replacing traditional incentives such as merchandise and travel incentives. The trend was well developed in the US but remained relatively immature in Europe. cadooz had a strong position in Germany, operating a tested and profitable model, making it an ideal platform for growth.
By 2011 cadooz was the leading full-service provider of multi-choice gift certificates and rewards for corporate incentive programmes in Germany providing 1.2 million certificates and generating annual revenue of €80 million. The Company served more than 3,000 corporate customers across a range of industries in Germany, Austria and Poland, offering a broad range of multi-choice gift certificates and cards that can be redeemed at more than 250 leading retailers at high street locations, on-line stores or using mobile phone applications.
In September 2011, Cadooz was sold to Euronet Worldwide generating a 2.4x return on invested capital and a 20% IRR.
“Palamon has been a highly active partner and has been instrumental in developing the business strategy which led cadooz through a rapid and sustainable growth phase enabling it to achieve its market-leading position in Germany.”
Florian Welsch, CEO of cadooz