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November 2006

March 2011

2.4x / IRR 20%

Business services

Hamburg, Germany


Provision of incentive programmes

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Business at time of investment

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.

Investment rationale

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.

Value creation

  • Institutionalised and professionalised management team: Palamon supported the build out of the management team with a new CEO, CFO, MD of Rewards and Chairman and created an incentive structure aligned for growth. Professionalised core functions including sales, marketing, finance and operations/IT.
  • Internationalised the business: Set up Austrian subsidiary and launched the cadooz offering into the market in 2010
  • Expanded product range and network: Launched a B2C coupon offering under the domain during late 2010. Enlarged the redemption partner network and launched new vouchers and products
  • Acquisition: Acquired B2C event voucher company yamando in 2008 and the PAYBACK Rewards division in March 2011, both financed by operating cash.

Company at exit

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.