Select Recent HW Human Capital Management (HCM) Technology Transactions

screen_shot_2019-02-11_at_3.01.26_pm.pngProvider of Workforce Management, Training, and Compliance Solutions for the Healthcare, Financial Services, and Real Estate Industries

 

 

 

screen_shot_2019-02-11_at_3.02.11_pm.pngDeveloper of business management software for businesses and non-profit organizations in the United Kingdom

 

 

 

screen_shot_2019-02-11_at_3.03.01_pm.pngProvider of time and attendance management, staff scheduling, payroll and security management software product

 

 

 

screen_shot_2019-02-11_at_3.04.01_pm.pngEmployee scheduling solutions for retail and hospitality sectors

 

 

 

 

screen_shot_2019-02-11_at_3.04.31_pm.pngProvider of emergency care training intended to deliver safety and health compliance to communities and businesse

 

 

 

 

screen_shot_2019-02-11_at_3.05.19_pm.pngProvider of administration software, rules-based online benefits enrollment, data integration, medical and voluntary benefits, broker and HR admin dashboards

 

 

 

screen_shot_2019-02-11_at_3.05.47_pm.pngDeveloper of business management software for businesses and non-profit organizations in the United Kingdom

 

 

 

screen_shot_2019-02-11_at_3.06.22_pm.pngProvider of administrative and clinical software tools as well as health care information management software

 

 

 

screen_shot_2019-02-11_at_3.06.48_pm.pngOffers courses for healthcare professionals and healthcare organizations & provides an online business-education library

 

 

 

screen_shot_2019-02-11_at_3.07.53_pm.pngProvider of grants management software solutions to the giving community in the United States and internationally

HCM Technology Focus Areas

Talent Acquisition and Management

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

Select, Representative Companies

screen_shot_2019-02-11_at_3.10.40_pm.png

  • Employee recruitment, engagement, and retention remain top of mind - especially as job market tightens
  • Data-driven / market place 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
  • 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

screen_shot_2019-02-11_at_3.12.02_pm.png

  • “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
  • HRIS automation is table-stakes as employers now shifting focus to productivity and collaboration enhancers
  • Automated and comprehensive risk management / compliance tools continue to experience strong adoption
  • Back office HR Capabilities for on-demand labor market is an emerging market opportunity
  • Leading vertical-specific platforms remain highly attractive to investors and acquirers (e.g., retail, healthcare, and hospitality)

Case Study: OnCourse Learning

HW’s TMT Group advised OnCourse Learning, a portfolio company of CIP Capital, on its acquisition by Bertelsmann Education Group.

screen_shot_2019-02-11_at_3.13.33_pm.pngRelevant HCM Technology Sub-Sector

  • Workforce Management
  • Talent Acquisition 
  • Talent Management

Company Overview

OnCourse Learning is a leading provider of eLearning, workforce management, and compliance solutions to enterprises and professionals across three high growth, highly regulated markets: healthcare, financial services, and real estate.

OnCourse offers a full suite of educational products including state and federally approved prelicensing and continuing education programs, accredited course content, exam prep tools, publications, e-books, events, and a sophisticated and customizable learning management system and course-authoring tool.

Bertelsmann SE & Co KGaA is a diversified media, services, and education company with operations spanning the globe.  OnCourse joins the Bertelsmann Education Group’s family of leading digital education and services companies, including Relias, Udacity and Hot Chalk.  As part of the transaction, OnCourse’s professional education segment will become a new entity within Bertelsmann Education Group while OnCourse’s healthcare segment will merge with Relias, a healthcare-focused e-learning, assessment and performance metrics business within the Bertelsmann Education Group portfolio.

Notable Q4 2018 HCM Technology Transactions

screen_shot_2019-02-11_at_3.16.45_pm.png

Ascentis’ Acquisition of Cincinnati Time Systems

  • Cincinnati Time Systems provides timekeeping and workforce-management software which helps track employee time and attendance and manage workplace compliance
  • Cincinnati Time Systems’ solutions help companies to optimize and manage employee costs, secure their facility, and comply with federal and state labor laws
  • The acquisition allows Cincinnati Time Systems to leverage Ascentis’ scale and flexible HCM offerings and take advantage of the large cross-sell opportunity between both companies' customer base
screen_shot_2019-02-11_at_3.17.46_pm.png

EQT’s Acquisition of Cast
& Crew

  • Cast & Crew provides payroll processing, payroll invoicing and reporting, residual invoicing and reporting services to companies in the film and television industry. It also provides production accounting software
  • Cast & Crew’s solutions simplify and automate complex processes for companies and productions in the film, television, digital streaming, commercial, and live events markets
  • EQT will support Cast & Crew in its next phase of development as the Company focuses on accelerating product and service expansion in current and new verticals, while continuing to provide best-in-class service to its customers
screen_shot_2019-02-11_at_3.18.42_pm.png

LinkedIn’s Acquisition of Glint

  • Glint provides a real-time employee engagement software platform designed to measure and improve employee retention rates
  • Glint’s employee engagement platform uses real-time people data to provide information about organization's health, predicts risks, and prescribes actions
  • Glint provides a powerful extension to LinkedIn’s existing talent business by providing greater visibility into the overall health and productivity of the people within an organization
screen_shot_2019-02-11_at_3.19.45_pm.png

Virgin Pulse’s Acquisition of Simplywell

  • Simplywell offers customized corporate health and wellness programs focused on reducing health risks of employees, which enables employers to better manage healthcare costs and create a workplace culture of health and well-being
  • Simplywell’s configurable wellness programs deliver results by connecting individuals to the technology, partners, and people needed to drive meaningful results and create healthy workplace cultures
  • With the addition of SimplyWell’s condition management coaching, claims analytics, and reporting capabilities, Virgin Pulse can expand the breadth of its employee health and wellbeing offering by helping the risky employees manage costly conditions
screen_shot_2019-02-11_at_3.20.43_pm.png

Paychex’s Acquisition of Oasis Outsourcing

  • Oasis Outsourcing specializes in providing human resources services, employee benefits administration, payroll and tax administration, risk management services, and staffing solutions
  • Oasis serves more than 8,400 clients across all 50 states with its HR solutions, employee benefits, payroll administration, and risk management services
  • Paychex’ acquisition of Oasis Outsourcing will strengthen its PEO growth strategy, gain scale for new products with the company’s insurance carrier partners, provide a new client base to offer Paychex retirement and time and attendance products

HCM Technology Acquisition Activity

Most Active Strategic Acquirers of HCM Technology Assets by Volume

picture1_122.png

  • The key strategic acquirers have combined for 38 HCM technology related acquisitions since 2015, but two of them (IBM and Oracle) have not completed a HCM acquisition since 2016
  • Paychex is the only key strategic to complete an acquisition in Q4 2018: on December 21st, Paychex acquired Oasis Outsourcing for $1.2B

Global HCM Technology M&A Activity

picture1_123.png

  • HCM M&A experienced another strong quarter with 30 transactions, as M&A activity remains elevated despite choppy global equity markets
  • HCM technology companies remain highly attractive to both strategic and financial acquirers
  • Deal volume is robust supported by tuck-in acquisitions and platform building

HCM Technology - Landscape

Representative Providers

screen_shot_2019-02-11_at_3.25.32_pm.png

Public HCM Technology Companies2

screen_shot_2019-02-11_at_3.28.05_pm.png

HCM Technology – Trading Comparables

Public Comparables

As of December 31, 2018   ($ in millions)

screen_shot_2019-02-11_at_3.29.19_pm.png

HCM Technology – Transaction Activity

Select Recent M&A Transactions2

screen_shot_2019-02-11_at_3.30.31_pm.png

Select Recent Private Placements

picture1_125.png

Note: Financial information presented above represents reported capital raised only.

1. PitchBook

2. Factset

 

 

The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: hwgermany@harriswilliams.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. awaited). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.