Select Recent HW Human Capital Management (HCM) Technology Transactions

screen_shot_2019-04-11_at_4.17.55_pm.pngProvider of GRC SaaS solutions including credential management and payer enrollment services to healthcare facilities

 

 

 

screen_shot_2019-04-11_at_4.18.22_pm.pngProvider of Workforce Management, Training, and Compliance Solutions for the Healthcare, Financial Services, and Real Estate Industries

 

 

 

screen_shot_2019-04-11_at_4.18.54_pm.pngDeveloper of business management software for businesses and non-profit organizations in the United Kingdom

 

 

 

screen_shot_2019-04-11_at_4.22.42_pm.pngProvider of time and attendance management, staff scheduling, payroll and security management software products

 

 

 

screen_shot_2019-04-11_at_4.23.22_pm.pngEmployee scheduling solutions for retail and hospitality sectors

 

 

 

screen_shot_2019-04-11_at_4.23.48_pm.pngProvider of emergency care training intended to deliver safety and health compliance to communities and businesses

 

 

 

screen_shot_2019-04-11_at_4.24.15_pm.pngProvider of administration software, rules-based online benefits enrollment, data integration, medical and voluntary benefits, broker and HR admin dashboards

 

 

 

screen_shot_2019-04-11_at_4.26.03_pm.pngDeveloper of business management software for businesses and non-profit organizations in the United Kingdom

 

 

 

screen_shot_2019-04-11_at_4.26.32_pm.pngProvider of administrative and clinical software tools as well as health care information management software

 

 

 

screen_shot_2019-04-11_at_4.26.59_pm.pngOffers courses for healthcare professionals and healthcare organizations & provides an online business-education library

HCM Technology Focus Areas

Talent Acquisition and Management

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

Select, Representative Companies

h.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
  • 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

hhhhh.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)

Notable Q1 2019 HCM Technology Transactions

screen_shot_2019-04-11_at_4.31.28_pm.png

Ascentis’s Acquisition of Integrated Time Systems

  • Integrated Time Systems offers time entry, pay rule calculations, labor costing, and scheduling software solutions
  • Integrated Time Systems is Ascentis’ third acquisition in six months and furthers the Company’s strategy to provide a fully integrated HCM suite
  • The acquisition of Integrated Time Systems through Ascentis’ subsidiary, NOVAtime, not only enhances the Company’s workforce management solutions, but also solidifies Ascentis’ market leading position in the Midwest

 

screen_shot_2019-04-11_at_4.32.33_pm.png

Vista Equity’s Acquisition of Plansource

  • Plansource provides SaaS, cloud-based benefits administration technology services
  • The Company offers a platform that automates various benefit transactions and connects employees with the insurance carriers for benefits administration
  • Vista’s acquisition of Plansource comes on the heels of a period of robust growth and expansion. With Vista’s backing, Plansource will accelerate its roadmap and plans to achieve real-time integrations with insurance carriers, insightful analytics for all stakeholders, and intuitive tools for self-service, personalization, and communications

 

screen_shot_2019-04-11_at_4.39.46_pm.png

K1’s Acquisition of Jobvite and Three Additional Companies (Talemetry, RolePoint, and Canvas)

  • Jobvite is a provider of best-of-breed recruiting software with a candidate-centric recruiting model that helps companies engage candidates with meaningful experiences at the right time
  • K1’s additional acquisitions provide HCM point solutions: Talemetry is a recruitment marketing company, RolePoint is an employee referral and internal mobility business, and Canvas is a text-based conversational recruiting company
  • The unique set of investments creates a business with over 2,000 customers and rapidly accelerates the companies’ product development roadmaps and the integration of their respective customer solutions

 

screen_shot_2019-04-11_at_4.41.54_pm.png

Hellman & Friedman’s Take Private of Ultimate Software

  • Ultimate Software is a provider of human capital management software whose product suite includes human resources, payroll, and benefits management functionality
  • Ultimate’s solutions manage the complete employee lifecycle from recruitment to retirement, and include talent acquisition and onboarding, performance management, salary planning, budgeting, succession management, reporting, and analytical capabilities
  • The deal with Hellman & Friedman will help Ultimate Software make additional investments in products and services

 

screen_shot_2019-04-11_at_4.42.55_pm.png

iSolved HCM’s Acquisition of Sage Group’s U.S. Payroll Outsourcing Unit

  • Sage Payroll Solutions (“SPR”), the U.S.-based payroll outsourcing business of The Sage Group PLC, provides payroll solutions to small and midsized companies
  • SPR’s counts over 44,000 customers of all sizes and provides integrated HCM, time and attendance, benefit advisory services and more
  • The acquisition accelerates iSolved’s growth in the human capital management industry, targeted toward the midmarket, and increases its licensee and partner network as well

 

HCM Technology Acquisition Activity

Most Active Strategic Acquirers of HCM Technology Assets by Volume

screen_shot_2019-04-11_at_4.46.12_pm.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
  • Key strategics accounted for none of the HCM Technology deals in Q1 2019
  • Workday and Kronos have established a consistent HCM M&A strategy, accounting for 16 transactions for the last four years

Global HCM Technology M&A Activity

screen_shot_2019-04-11_at_4.47.02_pm.png

  • There were 23 HCM Technology acquisitions in Q1 2019
  • While transaction volume slowed, HCM technology companies remain highly attractive to both strategic and financial acquirers
  • Trailing 12 months deal volume remains robust, supported by tuck-in acquisitions and platform building

HCM Technology - Landscape

Representative Providers

screen_shot_2019-04-11_at_4.48.45_pm.png

Public HCM Technology Companies

screen_shot_2019-04-11_at_4.49.35_pm.png

HCM Technology – Trading Comparables

screen_shot_2019-04-11_at_4.50.08_pm.png

HCM Technology – Transaction Activity

screen_shot_2019-04-11_at_4.51.02_pm.png

Select Recent Private Placements

screen_shot_2019-04-11_at_4.51.50_pm.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.