Bain Weighs HR Software Firm Sale at $2 Billion Valuation, Sources Say

(Bloomberg) -- Bain Capital is exploring options for Works Human Intelligence Co. including a potential sale that could value the human resources software developer at as much as $2 billion, according to people familiar with the matter.

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The private equity firm is working with an adviser on the potential transaction and has started reaching out to prospective buyers, said the people, who asked not to be identified discussing private information. Bain could sell its entire or partial stake in Works Human Intelligence, the people added.

Considerations are at an early stage and Bain could still decide to retain the asset for longer, according to the people. A representative for Bain declined to comment, while a representative for Works Human Intelligence couldn’t immediately respond to requests for comment.

Founded in 1996 as Works Applications Co., the Tokyo-based company offers software for payrolls, attendance management, talent management and a human resources chatbot, according to its website. It went public in Japan in 2001 until it was taken private and delisted in a management buyout a decade later. In August 2019, Bain acquired the firm for an undisclosed amount and renamed it as Works Human Intelligence.

Bain has made 21 investments in Japan including a 49.9% stake in chipmaker Kioxia Holdings Corp. and Showa Aircraft Industry Co., its website shows. The private equity firm has more than 40 investment professionals in Japan and manages about $160 billion in assets globally. Last month, it agreed to buy Olympus Corp.’s scientific instruments business Evident for 428 billion yen ($3.1 billion).

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