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.
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