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
Investors funded $6.6B for hr tech companies in 2016
Investors funded $2.4B into HR tech companies in 2015 across 383 deals
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
