HR Technology & HCM 2018 Deals Recap

Aug 15

HR Technology & HCM Deals 2018 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.
1 notable IPO in April 2018 –Ceridian HCM Holdings Inc (TSX:CDAY, NYSE:CDAY) - Tech company Ceridian raises $462 million through IPO.
More than 70 HRTech and related HCM M&A acquisitions.
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 – Adaptive Insights [JMI Equity acquired by Workday (NYSE: WDAY). Analytics for business planning acquired for $1.6B. before IPO.
2018 – Qualtrics acquired by SAP for $8B.
2018 – CEB Workforce Analytic division acquired by CultureIQ [Parker Gale Capital].
2018 – Ultimate Software (4100 customers, 38m lives, 9.2k ee lives per customer) 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 –Arcoro Inc. [Providence Equity Partners] acquires InfinityHR, ExakTime, BirddogHR. Undisclosed.
2018 – Engae2Excel [multiple] acquired by Comvest Partners.
2018 – Peoplefluent [Bedford Funding Corp] acquired by Learning technologies Group plc for $165m.
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 – Glassdoor acquired by Recruit Holdings. Acquired for $1.2B in cash.

The following list of M&A is for illustrative purposes only. A list of deal comparables for your company available upon request.

2018 – Paychex acquires Oasis Outsourcing (multiple PEO acquisitions) for $1.2B.
2018 – GPB Capital Holdings acquires PEO Surge Resources and MatrixOneSource.
2018 – Asure Software acquires USA Payroll, Evolution reseller licensee acquired by Asure. Press Release. $3m revenue run-rate. 2018 – Asure Software (NASD: ASUR) ) closes on acqusition of Telepayroll, Pay Systems of America, Savers TPA, ISystems for $31m,[2].
2018 – HireRight acquired by GIS (merger).
2018 – Vettery acquired by The Adecco Group. Staffing & HR talent management company acquired for $100M.
2018 – Equatex acquired by Computershare. Provider of compensation plan services acquired for $354.4M euros.