The Work Tech sector’s outsized growth potential, coupled by its significant fragmentation, increased competition and continued innovation has already kicked-off a broad- based wave of M&A. The trend is clearly towards integrated product offerings that cater to a wide range of adjacent functional needs for clients of all sizes. In 2020 there were 177 transactions, with disclosed value of $45.5 billion. We call this the Great Consolidation because its trajectory indicates a reshaping of the Work Tech competitive landscape, with longer-term implications.
Review of the June 2020 HR Tech M&A and fundraising activity, update on HR Tech valuations and peer benchmarking, job market activity by country, and key highlights from earnings reports other operational updates.
This market update looks at the April 2020 HR Tech M&A and fundraising activity, presents the latest HR Tech public market valuations, reviews the impact of COVID-19 on the job market (new jobs posted by country in April vs. previous 12 months), and summarises 1Q 2020 earnings reports and updated outlook for selected Core HR, Payroll & Benefits firms, Learning & Development businesses, Talent Acquisition platforms and Recruitment firms (permanent as well as temporary).
We are delighted to present our 2019 analysis of M&A and investment trends in the HR Tech sector. This is the second year in a row we release such a report, after the overwhelmingly positive reception of the inaugural publication.
Similar to last year, in this report we share some of the insights and observations we have gathered from working with companies and investors in the Human Capital Management space over the last 12 months. We review the most prevalent M&A and investment themes, analyse notable transactions and highlight the factors that are likely to drive corporate finance activity for HR Tech businesses going forward.
Below are the key takeaways. You can request the full report here.