M&A acquisitions summary of deals for 2016 in the HRTech

1. Solving the Value Equation
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2016 HRTech M&A Acquisition Transaction Deals
Annual HR Tech Exit Trends:
In 2016, there were approximately 57 HR tech exits, including 53 M&A transactions and 4 IPOs
announced through mid December 2016 compared with 2015’s total which saw 57 exits total, including
56 M&As and 1 IPO.
The peak year for HR tech exit activity globally was 2014, which saw 60 M&As and 4 IPOs (Source:
https://www.cbinsights.com/blog/hr-tech-startups-acquisitions-ipo/)1
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2017 HR Tech North American Market Forecast:
 Benefits Consolidation. Dozens of acquisitions occurred over the past two years with more
expected as large insurance companies consolidated both benefits brokerage companies as wel las
related add-on “beyond payroll” technology and solutions providers. Consolidation continues
industry trend blending of administrative services (payroll, benefits, ACA, etc.) with services and
solution providers.
 The HRTech market’s scope continues to expand into industry vertical specialization and
integrate with major business systems; CRM, ERP, SPM, FSM, Technical, PSA, etc.. The blending of
point solutions and software into either Platforms or marketplaces continues.
 Stagnant payroll services market as only a select few payroll service bureaus were acquired in
2016 and deal transaction values remained stagnant.
 Digitization of HR: Shift by some, transformation for others to Digital HR.
Notable HR Tech 2016 M&A Deal Transactions Summary:
TRANSACTION SUMMARY
2016 - undisclosed - Accenture Completes Acquisition of DayNine to Boost Market-Leading Workday Capabilities. Acquisition
creates the world’s largest Workday certified workforce helping transform employee experience for global clients.
2016 – Undisclosed. Mercer (Marsh & McLennan Companies, Inc. (NYSE:MMC)) acquires Sirota Consulting, LLC, provider of
global employee engagement solutions that offers the full breadth of organizational assessments, surveys, technology, and
analytics.
2016 – Undisclosed. WFM giant, Kronos (NYSE: KRO) grew even larger with Empower Software Acquisition of 1,000+ SMBs.
Estimated 4.0x EV/Rev multiple.
2016 – Undisclosed. PrismHR [Accel KKR), leading software provider to PEO, ASO acquires Summit Software.
2016 – Undisclosed. Engage2Excel, a provider of employee engagement solutions, Acquires Decision Toolbox, a recruiting
productivity platform.
2016 – Undisclosed. Thomsons Online Benefits is a SaaS provider of global employee benefits and employee engagement
software acquired by Mercer.
2016 – SnagAJob acquires PeopleMatter uniting two of the leading providers of hourly hiring solutions.
2016 - TrueBlue (TBI), a global provider of specialized workforce solutions has, through its PeopleScout RPO (recruitment
process outsourcing) group, acquired the RPO business of Aon Hewitt. This acquisition is a part of the One Global
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Corporate participation in deals to HR tech startups is at a record high, with 46 deals totaling $781M in funding in 2016 (as of 10/27/16). The number of
unique corporate investors, including corporate parents and their venture arms, investing in HR tech startups has more than doubled in 2 years and is at
a record high of 56 investors in 2016 year-to-date.

2. Solving the Value Equation
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PeopleScout initiative to further position PeopleScout as the leading global RPO provider with more than $150 million in
annual revenue and 300,000 annual full-time placements.
2016 - IBM Sells Salary.com Compensation Business To The Original Founding Team.
2016 – Undisclosed. SterlingBackcheck, one of the world's largest background screening companies, announced today that it
has agreed to merge with TalentWise, cloud HCM platform.
2016 - PayScale is pushing deeper into compensation analytics with the purchase of MarketPay, a 16-year-old Colorado-
based company that helps companies more effectively manage salary information
2016 – Callidus Software Inc. (NASDAQ: CALD), has acquired the assets of ViewCentral, a leader in the extended enterprise
learning market. The acquisition will augment CallidusCloud's Litmos mobile learning solution with a full revenue management
and e-commerce platform designed for selling and optimizing profitable training for customers and channel.
2016 - Asure Software (NASDAQ:ASUR), a global provider of time & labor and workspace management software solutions,
announced today that it has acquired Mangrove Employer Services, Inc. Based in Tampa, Florida, Mangrove is a leading
Cloud SaaS vendor in Human Capital Management (HCM) applications.
2016 - Hodes Acquires Innovative Employer Brand Advocacy Solution QUEsocial.
Acquisition Enhances Hodes Omnichannel Employer Branding Solution to Leverage Employee Social Media Networks and
Amplify Social Recruiting Capabilities
2016 – Undisclosed. Acquisition of Vestrics—Leading HR-Focused Predictive Analytics Platform
2016 - Ultimate Software Acquires Cloud Workforce Intelligence Provider Kanjoya; Introduces “UltiPro Perception” to Help
Customers Understand & Improve the Employee Experience.
Undisclosed.
2016 - Platfora acquired by Workday (NYSE: WDAY). Platfora’s Big Data Discovery is a Hadoop-based product geared
toward helping companies automated many of the steps involved in analyzing big data, from data cleansing and
transformation to building models and visualizing results
2016 - CallidusCloud Acquired Badgeville. Badgeville digitally motivates all types of people to achieve their business goals
in systems across the enterprise.
The asset acquisition was an all cash transaction for $7.5 million approximately 1X revenues.
2016 – Sodexo acquires Inspirus, 120 person engagement company to deliver employee engagement solutions.
2016 - Aon Hewitt Acquires Leading Provider of Employee Measurement Solutions, Modern Survey, an employee survey and
talent analytics solutions provider. An aggregated, holistic view of the employee lifecycle— from the candidate experience,
new employee onboarding to engagement and exit interviews.
2016 – PWC acquires The Gelfond Group to complement its people analytics and employee listening capabilities. The
Gelfond Group is a global leader in employee engagement surveys, employee opinion surveys, a wide range of workforce
assessments, specialized customer surveys, and business analytics.
Sources:
 The Recent History of HRTech Market Landscape and Major Deal Transactions
 HRTech’s largest exits
 Most active HRTech investors
 HR Tech Trading Multiples
 Get Ready for Disruptive Technology.
 Lessons from the HRTech Industry.
 2016-2017 HR Systems Survey White Paper.