HRtech Report 2H2018
Globally, HR technology is a large market space, spanning everything from recruitment to performance reviews. The increasing need for managing a widespread workforce and growing demand for replacing legacy systems with improved human capital management platforms are anticipated to fuel market growth.
There has been a plethora of new entrants attacking individual segments of the HR industry, which means incumbents will have to defend their positions, through innovation or acquisition, in an increasingly competitive space. As we are currently witnessing, an era of inevitable HR tech consolidation has already taken hold.
The report focuses on HR Tech subsectors such as Recruitment, Talent Management and Payroll & Benefits. It includes:
- Trends and analysis of deal activity
- Deal geography
- Top acquirers
- Valuation metrics
Total Number of HRtech M&A Deals
The total disclosed transaction value has remained stable over the last year, however the spike from 1H 2017 is explained by one billion dollar headline transactions in each period in 2H 2017 and 1H 2018. These large transactions demonstrate the strong growth and are a true reflection of the M&A environment.
In addition, in the past two years, venture capital and private equity investors have poured close to $2 billion into this market, with more than $900 million in the first seven months of 2017. The significant investment size in the early stages of market development is often later translated to large exits in future M&A.