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Singaporean sovereign wealth fund GIC will be buying Japan’s human-resources software provider Works Human Intelligence for 350 billion yen (S$3.5 billion) in a joint acquisition, Nikkei Asia reported on March 30.

It could potentially be the largest acquisition by GIC so far, the media outlet claimed.

GIC, a private company owned by the Singaporean government, is one of the entities managing Singapore’s foreign reserves. According to Nikkei Asia, it has been investing mainly in Japan’s property market.

The move hints at the sovereign fund’s potential venture into business acquisitions, Nikkei Asia added.

Works Human Intelligence Co.

Works Human is a company that optimises talent management processes in Japanese corporations. It is a spinoff from former Works Applications, an enterprise software developer.

In 2019, Works Application sold its human-resources management business to U.S.-based Bain Capital, a private investment firm, for 100 billion yen (S$1 billion).

Bain has been exploring options for Works Human’s sale since September 2022, according to Bloomberg.

The human resources software developer has been investing in efforts to develop cloud services and expand its client pool, Nikkei Asia reported.

Increase in value

Works Human's value multiplied by more than three times under Bain due to an increase in sales and earnings, as seen from GIC's acquisition price.

The sovereign fund will be acquiring approximately 50 per cent of Works Human’s shares.

The remaining shares will be held by the latter’s executives and a new fund founded by Bain.

In response to Mothership's queries, GIC's Chief Investment Officer for Private Equity Choo Yong Cheen said:

“We are pleased to invest with Bain Capital Private Equity in Works Human Intelligence, the leading player in enterprise human capital management software in Japan.

We are seeing a growing trend in cloud migration in the [Software as a Service] market and are confident that leading companies such as Works Human Intelligence will continue to be well-positioned to capture this growth in the market.”

Top image via GIC