2016 HRTech M&A Acquisition Transaction Deals

Annual HR Tech Exit Trends:

In 2016, there were approximately 57 HR tech exits, including 53 M&A transactions and 4 IPOs announced through mid December 2016 compared with 2015’s total which saw 57 exits total, including 56 M&As and 1 IPO.

The peak year for HR tech exit activity globally was 2014, which saw 60 M&As and 4 IPOs (Source: https://www.cbinsights.com/blog/hr-tech-startups-acquisitions-ipo/)[1].

2017 HR Tech North American Market Forecast:

• Benefits Consolidation. Dozens of acquisitions occurred over the past two years with more expected as large insurance companies consolidated both benefits brokerage companies as wel las related add-on “beyond payroll” technology and solutions providers. Consolidation continues industry trend blending of administrative services (payroll, benefits, ACA, etc.) with services and solution providers.
• The HRTech market’s scope continues to expand into industry vertical specialization and integrate with major business systems; CRM, ERP, SPM, FSM, Technical, PSA, etc.. The blending of point solutions and software into either Platforms or marketplaces continues.
• Stagnant payroll services market as only a select few payroll service bureaus were acquired in 2016 and deal transaction values remained stagnant.
• Digitization of HR: Shift by some, transformation for others to Digital HR.

 

Sources:

• The Recent History of HRTech Market Landscape and Major Deal Transactions

• HRTech’s largest exits

• Most active HRTech investors

• HR Tech Trading Multiples

• Get Ready for Disruptive Technology
• Lessons from the HRTech Industry
• 2016-2017 HR Systems Survey White Paper
• http://www.slideshare.net/cbedard/2016-hrtech-deal-acquisitions