LumApps Sold Majority Stake of ‘Intranet Superapp’ to Private Firm for $650 Million

LumApps - Bridgepoint

Today marks a significant development for LumApps, the French startup renowned for its “intranet superapp” facilitating internal communications and app provisioning for workforces.

The company, boasting a user base of approximately 5 million individuals across 700 organizations, announced a substantial move: private equity firm Bridgepoint is acquiring a majority stake in a deal valued at $650 million, deemed both a financial transaction and strategic investment.

In this transaction, LumApps’ existing investors, including growth divisions of Goldman Sachs, Eurazeo, Bpifrance, and IRIS, are poised to divest their stakes in the company.

LumApps – Bridgepoint

Notably, LumApps’ founders, led by CEO Sebastien Ricard, and senior management will retain their roles and ownership interests.

The anticipated closure of this deal is set for July 2024, while specific details regarding the company’s valuation and Bridgepoint’s stake remain undisclosed.

Although LumApps’ prior valuation stood at $255 million during its most recent funding round, this latest development signals a notable win for existing investors.

Eurazeo, for instance, cites itself as LumApps’ leading investor pre-deal, boasting over 30% ownership. The firm anticipates gross sale proceeds exceeding €210 million from this transaction.

This injection of capital positions LumApps to pursue acquisitions and expand its operations. With an existing client base comprising prominent entities like Airbus, Publicis Sapient, and Groupe Lafayette, alongside an international presence featuring clients such as Electronic Arts and Japan Airlines, LumApps is primed for growth.

LumApps – Bridgepoint

Moreover, its integration with numerous enterprise productivity and IT platforms, including Google Workspace, Microsoft 365, and Salesforce, bolsters its appeal.

However, LumApps operates in a fiercely competitive market, facing rivals like Haystack and contending with diverse approaches to business intranet solutions, such as those offered by Workday and Slack.

The investment also hints at potential mergers and acquisitions in the sector, as LumApps has previously engaged in acquisitions, most notably acquiring Teach on Mars to augment its learning capabilities.

Additionally, the company’s longstanding ambition to develop an AI-powered personal assistant is set to receive further investment, underscoring its commitment to innovation and enhancing user experiences.

Ethan Johnson
Ethan's journey into journalism began with a deep curiosity about how businesses operate and evolve in today's dynamic markets. Armed with a degree in Journalism from a prestigious university, he embarked on his career, initially covering local business developments before expanding his scope to national and international commerce news.