HR deals commentary /
- Valuations remain flat for HR services while HR tech valuations are highly dependent upon the quality of the platform and the underlying company economics.
- On pace for more than a $1B funded globally to HRtech, with more than $250m funded to 84 HRtech companies with USA HQ in the first half 2018.
- 1 notable IPO in April 2018 –Ceridian HCM Holdings Inc (TSX:CDAY, NYSE:CDAY) - Tech company Ceridian raises $462 million through IPO.
- More than 40 2018 year-to-date HRTech and related HCM acquisitions with M&A deals driven by holding companies and the following acquisition consolidation strategies:
- Acquisition of TPAs by payroll and HROs
- Acquisition of HR Consulting firms by Payroll and Insurance
- Consolidation of payroll and staffing to create industry leaders
- Shortage of certified HR technical and system implementation professionals
The following list of M&A is for illustrative purposes only. A list of deal comparables for your company available upon request.
2018 – Hcareers acquired by Virgil for $16.5m Hospitality career job board acquired by Career development and transition firm.
2018 – CultureIQ (Parker Gale) acquires CEB’s Workforce Surveys & Analytics (WS&A) division, which is being divested from Gartner. WS&A will be acquired from Gartner with the financial support of technology-focused private equity firm Parker Gale Capital. Pending.
2018 – Adaptive Insights acquired by Workday (NYSE: WDAY). Analytics for business planning acquired for $1.6B.
2018 – Ultimate Software (4100 customers, 38 m lives, 9.2k ee lives per customer average is acquiring French PeopleDoc ($50m raised, 1k customers, 4m ee lives) for $300m in cash and stock with $75m upfront, $50m 1 year later, and $175 in stock).
Additional deal resources available at
- HRTech Capital Funding from #HRWins Larocque
- Workology history of HR tech acquisitions 2004 to 2016
- CB Insights HRTech news
- Investors funded $6.6B for hr tech companies in 2016
- Investors funded $2.4B into HR tech companies in 2015 across 383 deals
- HRMarketer Blog: M&A Friday : @Hrmarketer M&A Friday : com
- CrunchBase Deals by Categories: Scheduling, Human Resources, Recruiting, Staffing and keywords: Payroll, HR
- HCM and HR Tech Industry Valuation Multiples: Capstone Headwaters Q1 2018, Delancey Street August 2017 , Baird HR Tech Industry Notes
- PEO Industry Valuation Multiples: NAPEO, BLG, Capital Alliance, Silva Capital