HW Human Capital Management (“HCM”) Introduction

Harris Williams (“HW”)

  • 25+ years and more than 1,000 closed transactions
  • 350+ professionals across eight office globally
  • 170+ closed transactions in the last 24 months
  • 10 industry groups

Focused Advisory Services

  • Mergers and acquisitions (M&A)
  • Capital raises
  • Corporate divestitures

Consistent Recognition for Quality

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HW Technology, Media & Telecom (“TMT”) Group

  • 35+ dedicated TMT professionals
  • TMT offices include Boston, San Francisco, and London

Key TMT Themes

  • SaaS / Cloud
  • Data & Analytics
  • Digital Transformation
  • A.I. / Machine Learning

Horizontal Focus Sectors

  • Application Software
  • Cloud Managed Services and Hosting Solutions
  • Compliance Solutions
  • CRM and Marketing Automation
  • Human Capital Management
  • Infrastructure and Security Software
  • IT and Tech-Enabled Services
  • Marketing, Research, and Insights Software

Vertical Focus Sectors

  • Architecture, Engineering, and Construction Software
  • Education Technology and Services
  • Energy Technology
  • Facilities and Real Estate Software
  • Financial Technology and Payments
  • Government Technology
  • Healthcare IT
  • Industrial and Supply Chain Technology
  • Internet and eCommerce
  • Retail Technology

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HCM Technology Focus Areas

Talent Acquisition and Management

Solutions focused on sourcing, recruiting, interviewing, and onboarding employees to an organization

Select Representative Companies

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  • Employee recruitment, engagement, and retention remain top of mind – especially as the job market tightens
  • Data-driven/marketplace tools are increasing connectivity for both enterprises and their contingent/on-demand workers
  • Talent tools adopting machine learning, predictive analytics, assessment algorithms, and artificial intelligence
  • Real-time employee review solutions gaining traction (social, collaboration management, rewards)
  • Identification and recruitment of internal and known talent are corporate strategic initiatives
  • Learning management systems and corporate learning, training, and compliance content increasingly core to HR suite

Workforce Management

Solutions focused on optimizing the efficiency and productivity of an organization’s employees

Select Representative Companies

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  • “Workforce as a Strategy” is increasingly driving companies to adopt data-driven technologies that remove friction from the employee journey
  • Benefits and payroll solutions are fundamental to employee/employer connectivity, with engagement and wellness proliferating
  • Automated and comprehensive risk management/compliance tools continue to experience strong adoption
  • Back-office HR capabilities for on-demand labor market are an emerging market opportunity
  • Leading vertical-specific platforms remain highly attractive to investors and acquirers (e.g., retail, healthcare, and hospitality)

Notable Q3 2020 Human Capital Management Technology Transactions1,2

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OutMatch Acquisition of LaunchPad Recruits

  • LaunchPad provides an end-to-end recruitment automation platform
  • As part of the acquisition, OutMatch has launched a new talent selection platform that ties candidate screening, assessments, video interview, and AI-driven predictive analytics into a single integrated, automated workflow platform
  • The combination of the two entities creates a market-leading solution with an automated end-to-end recruiting solution

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Zebra Technologies Acquisition of Reflexis Systems

  • Reflexis provides intelligent workforce management, execution, and communication solutions for organizations in the retail, food service, hospitality and banking industries.
  • Reflexis One is a do-it-all workforce operations solution, enabling enterprises to define the job, staff, and schedule to the specifications, as well as report outcomes in a single platform
  • The acquisition of Reflexis Systems aligns with Zebra Technologies Enterprise Asset Intelligence vision of making workers and assets connected, visible, and fully optimized

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Circa Acquisition of America's Job Exchange

  • America's Job Exchange is a leading provider of diversity recruitment and OFCCP compliance technology solutions in the U.S.
  • America’s Job Exchange has been a pioneer in online recruitment and compliance, having evolved from America’s Job Bank, which was founded by the department of Labor in 1995
  • Circa is a large provider of OFCCP compliance solutions in the market, and the acquisition of AJE further increases the Company's market share while increasing the number of enterprise customers

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Perceptyx Acquisition of Employee Insights Business of Kantar Group 

  • The Employee Insights Business of Kantar Group provides surveys to employees while offering a comprehensive database of employee feedback to employers
  • The database allows Kantar to perform consulting tasks and give insight to help clients better understand their existing workforce management initiatives
  • This acquisition will allow Perceptyx to better serve existing customers by giving enterprise customers more robust insights into how the employee experience correlates with business outcomes

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Jobvite Acquisition of Predictive Partner

  • Predictive Partner is a provider of AI and data science solutions, serving a variety of end markets and developing solutions to assist in complex data problems for enterprise customers
  • Predictive Partner's team of data scientists consults with customers to better understand conflicts, develop solutions, and monitor progress to optimize the future output and outcome
  • The addition of Predictive Partner’s group of data scientists will allow Jobvite to integrate AI into all aspects of the Company’s software, enabling greater data-driven hiring decisions

HCM Technology Acquisition Activity

Most Active Strategic Acquirers of HCM Technology Assets by Volume

  • The key strategic acquirers have combined for 51 HCM technology-related acquisitions since 2015
  • Workday and Kronos have established a consistent HCM M&A strategy, accounting for 22 transactions for the last five years
  • Combination of Ultimate Software and Kronos has created one of the largest privately-held HCM companies

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Global HCM Technology M&A Activity1

  • There were an unprecedented 51 HCM technology acquisitions in Q3 2020
  • The HCM technology experienced accelerated transaction volume in Q3 2020
  • HCM technology companies continue to attract attention from both strategic and financial acquirers

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HCM Technology - Landscape

To receive the latest Human Capital Management Technology market map, please contact HW at *TMT_HCM@harriswilliams.com

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Public HCM Technology Companies2

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HCM Technology – Trading Comparables1

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Recent Transaction Activity1,3

Recent M&A Transactions

($ in millions)

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Recent Capital Raises1,3

Recent Capital Raises

($ in millions)

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1. Capital IQ

2. Mergermarket

3. PitchBook