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September 17, 2018

HR Technology & HCM Deals 2018 year-to-date

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 – Vettery acquired by The Adecco Group. Staffing & HR talent management company acquired for $100M.

2018 – Hcareers acquired by Virgil for $16.5m Hospitality career job board acquired by Career development and transition firm.

2018 – CEB Talent Assessment acquired by Exponent Private Equity. HR Assessment solutions.  Acquired for $400m via LBO.

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 – Glassdoor acquired by Recruit Holdings. Acquired for $1.2B in cash.


2018 – Asure Software (NASD: ASUR) ) closes on acqusition of Telepayroll, Pay Systems , Savers TPA, USA Payroll. ISystems for $31m[1],


2018 – Equatex acquired by Computershare. Provider of compensation plan services acquired for $354.4M euros.

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).

2018 – Peoplefluent acquired by Learning Technologies Group. HR Talent management solutions acquired by eLearning company for $150M.

Additional deal resources available at

 

 

Posted at 04:14 PM |