《Hampleton:2023年上半年人力资源技术并购市场报告(英文版)(10页).pdf》由会员分享,可在线阅读,更多相关《Hampleton:2023年上半年人力资源技术并购市场报告(英文版)(10页).pdf(10页珍藏版)》请在三个皮匠报告上搜索。
1、1|10 HRTech M&A Overview 2H 2022HRTech:The Future of WorkThis facilitates flexible working models,and savesresources within the HR function,which can bedeployed to derive data-based strategies to retainemployee satisfaction and hire talent.We have seen that many HRTech solutions are aimed atcreating
2、 a lasting employee experience and satisfaction,which are essential in maintaining a strong and efficientworkforce and attracting talent.Many employers areapproaching this by introducing technological solutions tobe able to offer flexible working models,promotingdiversity and inclusion,and supportin
3、g(mental)health andwell-being.The deployment of these new tech-enabledsolutions,enable new forms of data collection andaccelerated,reliable,and data-driven decision-making.Rethinking People StrategyOurHRTechM&Asnapshotunderlineshowtechnological solutions in Human Resources havebecome of increasing i
4、mportance across organisationsacross the world.Increasing deal volumes have shownthat HR Leaders are rethinking their people strategyand are ready to invest into this digital transformation.Bullish InvestorsThere is a boom in HRTech solutions,with almost$11billion of investment into HRTech for the s
5、econd yearin a row.This years unprecedented high level ofinvestment activity from both strategic and financialinvestors shows that the market is bullish and that theupward trend is here to last.Key Strategy Employees firstThe current macroeconomic environment is making itdifficult for organisations
6、to hire and retain talent.Many companies are seeking technological solutionsfor their HR departments to support them in winningthe war of talent.So far,they are using technology todecentralise the HR department and to strategicallysupport their employees well-being.Cloud-based(often also AI-based)hu
7、man resourcemanagementsystems(HRMS)thatconnecttheorganisation with its employees are deployed in manyorganisations to facilitate the decentralisation of HR.They allow remote and automated management ofemployee data,processes,and communication.2|10 HRTech M&A Overview 2H 2022Total number of HRTech M&
8、A transactions and valuation multiples by half-year,2017-2022M&A SummaryTotal number of HRTech M&A transactions by quarter,2017-2022This year,we counted 93 transactions in 2H2022,and2H2021 has seen 109 deals with a few weeks of theyear to go.Revenue multiples have seen a slight decline,coming inat 4
9、.5x in 2H2022.There were not enough disclosedEBITDA multiples to warrant a reliable trailing 30-month median EBITDA multiple.Disclosed deal value has fluctuated reasonably butvaries greatly according to disclosure rates.This year,we have seen as total disclosed transaction value of$11bn,which is a+2
10、%increase from 2021.Sector maintains momentumOur research covers all human resources technologydeals.Theseinclude,butarenotlimitedto,technologies such as human resource managementsystems(HRMS),HRanalyticstools,employeeinformationandbenefitstools,recruitmentandapplicant tracking systems,and workforce
11、/productivitymanagement.Since the pandemic in 2020,the transaction volume ofHRTech has increased by 282%to around$11 billion.Transaction volume in the space has grown by about+7%from 2021.We counted 216 transactions in2022 compared to 201 transactions in 2021.2.7x2.7x2.7x2.7x3.3x3.1x3.3x3.1x4.6x4.9x
12、4.6x4.5x0.0 x1.0 x2.0 x3.0 x4.0 x5.0 x6.0 x-20 40 60 80 100 120 1401H 20172H 20171H 20182H 20181H 20192H 20191H 20202H 20201H 20212H 20211H 20222H 2022Transaction Volume and EV/Rev(2017-2022)Transaction VolumeTrailing 30-month median EV/S22 16 20 20 34 31 26 29 36 29 29 29 35 31 38 45 54 40 55 54 62
13、 62 46 47 0070Qtr1Qtr2Qtr3Qtr4Qtr1Qtr2Qtr3Qtr4Qtr1Qtr2Qtr3Qtr4Qtr1Qtr2Qtr3Qtr4Qtr1Qtr2Qtr3Qtr4Qtr1Qtr2Qtr3Qtr42002020212022Transaction volume3|10 HRTech M&A Overview 2H 2022Private Equity and HRTechfor around 46%of the transactions,which is 3%lessthan in 2021.According to lates
14、t forecasts,this trendis going to continue going into 2023.The split remains evenPrivate equity buyers have consistently made up alarge portion of the transaction volume over time.In2H2022 so far,private equity buyers have accounted.Total number of HRTech M&A transactions by acquirer type,and PE sha
15、re by half-year,2017-2022Acquisition spotlightOver the past two years,Providence Equity Partners,aUS-based private equity firm,invested heavily inHRTech targets through direct investments as well asthrough their portfolio companies in buy-and-buildscenarios.In August 2022,Wagepoint Inc.,an onlinepay
16、roll automation SaaS firm backed by ProvidenceEquity Partners,acquired KinHR LLC(2012).The US-based company provides employee management SaaSwith features including mployee data management,electronicsignatures,digitaldocumentstorage,onboarding,performancemanagement,time-offtracking,HRIS,and objectiv
17、e tracking.Providence Equity Partners directly acquired TenstreetInc(2006),a trucking HR management SaaS companyin October 2021.ItoffersERPHRhiring managementSaaSforbusinesses in the trucking sector with features thatenable workflow efficiencies for hiring and retainingemployees.Backed by Providence
18、 Equity Partners,Tenstreet has announced multiple acquisitions for2023.ACQUIRED04 Oct 2021ACQUIRED09 Aug 202255%49%43%65%63%57%36%44%55%45%43%51%0%10%20%30%40%50%60%70%0204060801001201H 2017 2H 2017 1H 2018 2H 2018 1H 2019 2H 2019 1H 2020 2H 2020 1H 2021 2H 2021 1H 2022 2H 2022PE or PE-backed acquir
19、ersStrategic acquirersPE share(%)4|10 HRTech M&A Overview 2H 2022InvestorsInvestmentsin 30monthsThree most recentinvestments5CloudCMECloudCME LLC(USA):LLC(USA):Healthcare continuing education SaaSRieventRievent Technologies LLC(USA):Technologies LLC(USA):E-learning SaaSmyClinicalExchangemyClinicalEx
20、change LLC(USA):LLC(USA):Clinical training management SaaS5DeelDeel Inc.(USA):Inc.(USA):Compliance and payroll solutionGimoGimo JSC(Vietnam):JSC(Vietnam):Payroll platform for Vietnamese workersNowPayNowPay Inc.(Egypt):Inc.(Egypt):Fintech platform to improve financial wellness of employees5IntelligoI
21、ntelligo Software Ltd.(Ireland):Software Ltd.(Ireland):HR SaaS&outsourced servicesHRPRO doo(Croatia):HRPRO doo(Croatia):Human resources management SaaSAditroAditro Public Oy(Finland):Public Oy(Finland):HR&payroll management SaaS4O5 Systens Inc.(USA):O5 Systens Inc.(USA):Recruiting management&analyti
22、cs software&SaaSDataFuzion HCM Inc.(USA):DataFuzion HCM Inc.(USA):Workforce management software&servicesATI ROW LLC(USA):ATI ROW LLC(USA):HCM SaaS&BPO services4HarverHarver B.V.(Netherlands):B.V.(Netherlands):HR management and pre-employment SaaSChecksterCheckster(USA):(USA):Workforce management Saa
23、SFurstPersonFurstPerson Inc.(USA):Inc.(USA):Contact center hiring management SaaS4SkillSurveySkillSurvey(USA):(USA):Talent intelligence SaaSCandidate ID Ltd.(UK):Candidate ID Ltd.(UK):Recruitment&marketing automation SaaSAltruAltru Labs Inc.(USA):Labs Inc.(USA):Employee onboarding SaaS3SkillSureSkil
24、lSure Inc.(Canada):Inc.(Canada):E-learning SaaS&mobile appKnowledge Strategies Inc.(USA):Knowledge Strategies Inc.(USA):Learning management&training SaaSClaymore Inc.(Canada):Claymore Inc.(Canada):E-learning SaaS4TandemployTandemploy GmbH(Germany):GmbH(Germany):HR training SaaSTalentcubeTalentcube G
25、mbH(Germany):GmbH(Germany):Video-recruiting SaaS&mobile applicationNetwervenNetwerven B.V.(Netherlands):B.V.(Netherlands):Recruitment management SaaS&services3WagglWaggl Inc.(USA):Inc.(USA):Employee engagement SaaSCultureIQCultureIQ Inc.(USA):Inc.(USA):Enterprise culture management SaaSCultivate Tec
26、hnology Inc.(USA):Cultivate Technology Inc.(USA):HR coaching SaaS3QuorbitQuorbit Ltd.(UK):Ltd.(UK):Workforce planning SaaSAscentisAscentis Corporation(USA):Corporation(USA):ERP human resources SaaSSpotCuesSpotCues Inc.(USA):Inc.(USA):Employee management SaaS&mobile applicationTop Investors PAST 30 M
27、ONTHShealth care workers,completed a record number of 5deals.ThefactthattheventurecapitalistY-Combinator leads the list with 5 investments showsthat many HRTech companies are still in their earlystages.Strategic Acquirers dominate topMany of the most prolific acquirers of the past 30monthswereprivat
28、eequityfirmsandstrategiccompanies backed by private equity firms.However,two out of the top-3 most active acquirers werestrategic acquirers.HealthStream,the NASDAQ-listedcompanydeliveringHRTechsolutionsfor.5|10 HRTech M&A Overview 2H 2022HRTech:Top TrendsDecentralisation of HRIncreased demand for th
29、e decentralisation.of traditional HR functions(e.g.,accessing online paystubs,previewing pay stubs before payday,holidayplanning,accessing the information on health plancoverage)has been seen with the global increase inremote working models.This allows HR to focusmoreonstrategicgoals,particularlyreg
30、ardingrecruitment in todays highly competitive hiringlandscape.Diversity and Inclusion(D&I)Companies around the world are increasinglyprioritising D&I in the workplace.Creating an.inclusive culture,it is essential to promote transparency,fairness and equality within the organisation.This can beachie
31、ved by eliminating bias by using a data-drivenapproach towards employee-related processes.This waydecisionslikegoalsetting,performancefeedback,appraisals,and compensation management can be fullysupported by data and facts.Health and Wellbeing,which were exacerbated by the pandemic,are causingorganis
32、ations to place a greater emphasis on employeewell-being and mental health.Companies are reacting tothis development by providing access to EmployeeAssistance Programmes(EPA),mental health apps,andwellness tracking platforms.Increased levels of anxiety,stress and depressionHybrid WorkingMore and mor
33、e companies have adopted.hybrid working models since the pandemic.Theseamless integration of workstreams as well thecommunication and collaboration between on-siteand remote workers is vital in maintaining a strongworkforce.Cloud-based human capital management(HCM)solutions will help employers to ma
34、nage theremote work force,measure productivity,andpromote cooperation between teams.6|10 HRTech M&A Overview 2H 2022M&A breakdown$3.7 billion$3.7 billion 30 Aug 2022Roper Technologies acquires Frontline Technologies$754 million$754 million03 Jan 2022Blackbaud Inc.acquires EVERFI Inc.$400 million$400
35、 million06 Feb 2022Apax Partners acquires EcoOnlineHolding AS(Norway)$370 million$370 million05 Jan 2022Vera Whole Health Inc.(US)acquires Castlight Health Inc.(US)for 2.2x EV/Rev$360 million$360 million01 Nov 2022Voya Financial Inc.acquires(US)Benefitfocus Inc.(US)for 2.3x EV/Rev and 60.6x EV/EBITD
36、A$311 million$311 million26 Oct 2022K1 Investment Management LLC(US)acquires ELMO Software Ltd(AUS)for 5.8x EV/Rev and 74.3x EV/EBITDA$300 million$300 million12 Apr 2020Sumeru Equity Partners(US)acquires Beqom SA(CH)for 10.0 x EV/RevLARGEST DEALS OF 2022HEADQUARTERS OF HRTECH TARGETSHEADQUARTERS OF
37、ACQUIRERS OF EUROPEAN TARGETSLAST 30 MONTHSOver the past 30 months,58 per cent of Europeantargets were bought by acquirers that were alsoEuropean.Meanwhile,66 per cent of all.transactions worldwide targeted a North Americancompany,compared to 25 per cent targeting aEuropean country and the rest of t
38、he world roundingout the remaining 9 per cent.55460Number of acquisitionssince July 2020Number of acquirers that made 1 acquisition in 202214%of all acquirersEurope58%North America39%RoW3%Europe26%North America65%RoW9%7|10 HRTech M&A Overview 2H 2022HRTech:Selected dealsRoperTechnologiesacquiresFron
39、tlineEducationTheUS-baseddiversifiedindustrialengineeringcompany acquired Frontline Education from privateequity firm Thomas Bravo in August 2022.FrontlineEducation,foundedin1998,providesadministrationSaaSforUS-Americanschools.Thesoftwareenablesautomatedworkforcemanagementwithfeaturesaround.ACQUIRED
40、20 Dec 2021SERIES D29 Apr 2022UndisclosedSD Worx Groups investment into HRM SaaSThe Belgium-based SD Worx Group was traditionallyknown as a service provider within the HR sector.Through strategic acquisitions,the company hasdeveloped into a leading European provider of payrolland HRM SaaS.In the las
41、t twelve months,SD Worx made twofurther acquisitions.In July 2022 they acquiredHRPRO doo,a Croatian software company foundedin 2000.The company provides human resourcesmanagement SaaS for businesses globallyIn October 2022,SD Worx acquired the award-winningpayrollsolutionsproviderIntelligo.TheIrelan
42、d-basedsupplierprovidesHRandpayrollsoftware as well as outsourcing services.Y-Combinators heavy investment into HRTechOver the last two years,Y-Combinator,a US-basedtechnologystart-upacceleratorspecialisedinincubation,seed,and later-stage funding investedsignificantly in SaaS in the HRTech space.A t
43、rendamong their recent investments is the focus onfinancial technology to support HR functions withinorganisations.Y-Combinators latest investment(Series D)was intothe US-based start-up Deel Inc.The company designsand develops compliance and payroll solutions forindependent contractors and full-time
44、 employees.Theentirefundingroundraised$329million(YCombinators contribution is undisclosed).ACQUIRED30 Aug 2023$3.7 billionACQUIRED28 Jul 2022Undisclosedhiring,job placement,payroll and timekeeping forschool districts and professional teachers.Roper Technologies underlining strategic motive forthis
45、acquisition is its repositioning as a software firmon the global market.The acquisition is a strategicadditiontoSDWorxportfolio in its attempt toexpand its presence in theIrish market and strengthen itsportfolio of its own payrolland HR software.GIMO JSC is a 2020-founded payroll platform forVietnam
46、eseworkers.Altogether,Y-Combinatorinvested in 8 deals in the last two years.$380k8|10 HRTech M&A Overview 2H 2022AboutHampletonPartnersHampleton Partners is at the forefront of international Mergers and Acquisitions advisory for companies withtechnology at their core.Hampletons experienced deal make
47、rs have built,bought and sold over 100 fast-growing tech businesses andprovide hands-on expertise and unrivalled international advice to tech entrepreneurs and the companies who arelooking to accelerate growth and maximise value.With offices in London,Frankfurt,Stockholm and San Francisco,Hampleton
48、offers a global perspective withsector expertise in:Automotive Tech,IoT,AI,Fintech,Insurtech,Cybersecurity,VR/AR,Healthtech,DigitalCommerce,Enterprise Software,IT Services,and SaaS&Cloud.While the pandemic and other macroeconomic factors have significantly reducedM&A activity in many traditional bus
49、iness sectors,HRTech companies arecurrently in high demand.HR Leaders worldwide have recognised the importance of rethinking their peoplestrategy and placing employee well-being on top of the agenda.They have realisedthat achieving employee satisfaction is a key ingredient to attract and retain tale
50、nt.We have seen a significant uptick of 282%in the HR Tech market since COVID in2020.Highgrowthcompanies,innovativesolutionsandbreak-throughtechnologies are dominating the space.Both financial and strategic investors aredetermined to be part of this development.Axel BrillManaging DConclusion&Contact
51、sAs first-movers,strategic investors like HealthStream,SD Worx,and Ceridian are leading the list of the mosttransaction in the last 30-months.The fact that the Venture Capitalist Y-Combinator also leads the list of themost investments shows that many HRTech companies are still in their early stages.
52、We expect the followingyears to see a further boom in the sector,as more and more HR Leaders start reshaping their strategies.Hampleton provides independent M&A and corporate finance advice to owners of Autotech,Internet,IT Services,Digital Commerce,and Software companies.Ourresearch reports aim to
53、provide our clients with current analysis of the transactions,trends and valuations within our focus areas.Data Sources:We have based our findings on data provided by industry recognised sources.Data and information for this publication was collated from the 451 Research database,a division of The 4
54、51 Group and part of S&P Global;Capital IQ,a product of S&P Global;Research&Markets;CB Insights.Disclaimer:This publication contains general information only and Hampleton Ltd.,is not,by means of this publication,rendering professional advice or services.Before making any decision or taking any acti
55、on that may affect your finances or your business,you should consult a qualified professional adviser.Hampleton Ltd.shall not be responsible for any loss whatsoever sustained by any person who relies on this publication.2023.For more information,please contact Hampleton Ltd.Hampleton produces regula
56、r reports on M&A activity in the following sectorsHampleton produces regular reports on M&A activity in the following sectorsHRTechInsurtechIT&Business ServicesAR/VRArtificial Intelligence Automotive TechnologyCybersecurityDigital CommerceEnterprise SoftwareFintechHealthtechYou can subscribe to these reports at http:/ FranciscoFollow HampletonFollow Hampleton