Workhuman in refinancing talks with AIB and Silicon Valley Bank

WORKHUMAN, the Irish-founded unicorn status company that runs employee recognition schemes for some of the world’s largest multinationals, is in talks with AIB and Silicon Valley Bank about a refinancing that could lead to a substantial distribution of capital to shareholders.

The High Court has approved a balance sheet restructuring of Globoforce, the holding company, which will result in the creation of distributable reserves of €448m.

The court move means that the business can raise debt finance and potentially make a distribution of up to that amount.

Co-founded in 1999 by CEO Eric Mosley, who is from Glenview in Tallaght, Workhuman develops software-as-a-service tools for human resources departments.

The company is co-headquartered in Massachusetts and in Dublin 12, where it employs 600 people in Park West.

The restructuring was somewhat complicated by the opposition of Intermediate Capital Group (ICG), a London-based investment fund which is a 10 per cent shareholder in the company.

However, despite registering its disapproval, ICG did not make an appearance at a recent court hearing.

Previously, the court heard that there had been a “breakdown in relations” between ICG and Barry Maloney, the largest shareholder in the company.

Aside from its equity holding, acquired from early backers, ICG funded Maloney’s purchase of a large stake in the business that had been held by Balderton Capital, a private equity firm where the Irishman was formerly a partner.

In 2020, ICG spent €100m to buy a 10 per cent stake in Workhuman, buying stick from investors, some of whom had backed the company in a €220,000 fundraising as far back as 1999.

ICG’s investment valued Work-human at €1.08bn.

Legal correspondence exhibited in the High Court application that forms part of the capital restructuring, lays bare the schism between both parties,

Maloney’s legal adviser cited a “breakdown in the relationship”.

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