Strong Transaction Experience in HCM Technology
HW&Co. HCM Technology Transaction Experience
HCM Technology Taxonomy
Select HCM Technology M&A Transactions - Q4 20171,2,4
Intuit has acquired TSheets
- TSheets is a platform used by small and medium businesses, self-employed workers, and accountants to automate time tracking and scheduling.
- A significant relationship to Intuit, Tsheets has been a long-standing partner of Intuit’s QuickBooks offering and has one of the most popular apps on Intuit’s open platform.
- Intuit will use the transaction to fully integrate Tsheet’s platform into its QuickBooks offering providing customers with a single, seamless solution to track their time, streamline their invoicing, and simplify paying their workers.
Insight Venture Partners has acquired Bullhorn; Bullhorn has acquired PeopleNet
- Bullhorn provides a cloud-based platform to help staffing and recruiting organizations transform their businesses.
- PeopleNet provides workforce management solutions including time, attendance, and expense management.
- Insight’s acquisition will further catalyze Bullhorn’s growth in a rapidly evolving industry fueled by new demands for the future of work.
- With PeopleNet, Bullhorn will address the growing complexity of staffing firms by providing flexible time, attendance, and expense management solutions for firms of all sizes.
The Carlyle Group has acquired BenefitMall
BenefitMall provides employee benefits and payroll services to small and medium-sized businesses across the United States.
BenefitMall is the largest national General Agency and the second-largest privately-owned payroll services firm in the U.S., serving 200,000 small and medium-sized businesses, and partnering with a network of 20,000 brokers and CPAs.
- The acquisition will enable BenefitMall to grow the Company’s salesforce while expanding and taking significant market share as the demand for integrated benefits, payroll, and related products and services continues to grow rapidly.
Silver Lake has invested in Cornerstone OnDemand
Cornerstone OnDemand is a global leader in cloud-based learning and human capital management software.
Silver Lake’s $300mm strategic investment in Cornerstone will be used to fund growth initiatives and manage its capital structure, including repaying existing debt and repurchasing common shares.
- Furthermore, Cornerstone will launch a three-part strategic plan: sharpening its focus on recurring revenue growth; more aggressively driving operating margins and free cash flow; and leveraging its leadership position in global learning to expand its presence in e-learning content.
ADP has acquired Global Cash Card
- Global Cash Card operates an advanced and flexible digital payments processing platform including paycards and other electronic accounts.
- Digital Cash Card offers solutions for both Form W-2 employees and Form 1099 contractors, including capabilities such as online bill pay, rewards plan enrollment, multi-purse management, and an expense manager.
- ADP will fully integrate Global Cash Card’s platform and solutions into its existing paycard offer, the ALINE Card by ADP, managing more than four million accounts on a single platform.
Select Recent HCM Private Placements1,2
Financing Spotlight Transaction
Glint Raises $20M
- Glint operates a platform that conducts employee surveys and then analyzes the results using machine learning, natural language processing, and predictive analytics to improve workforce happiness and reduce recruiting expenses.
- Founded in 2013, Glint’s latest round of funding is from existing investors Bessemer Ventures, Meritech Capital Partners, Norwest Venture Partners, and Shasta Ventures
- Glint’s new capital will be used to grow its operations and expand in Europe, where its customers already include Sky Media. Some of Glint’s other clients are United Technologies, Pure Storage, Intuit, LinkedIn and Rio Tinto.
HCM Technology Acquisition Activity1,2
Key Strategic Acquirers of HCM Technology Assets by Volume
- The key strategic acquirers have combined for over 30 HCM technology related acquisitions since 2014
- Key acquirers were relatively less active in Q4 with just one acquisition completed in the last three months (ADP / Global Cash Card)
Global HCM Technology M&A Activity
- The 51 deals in 2017 is slightly below deal volumes from the previous two years; the quarterly M&A volume in 2017 has been relatively consistent
- Q4 2017 was a typical period of M&A volume with 12 transactions, just below the average of the last three quarters
- 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 Market Valuation1,2
Public Comparables Analysis1
Operational and Valuation Metrics of Public Companies
Recent HCM Software Transactions1,2,3
HW&Co.'s TMT Group: M&A Advisor of Choice for Market Leading Technology Companies
3.HW&Co. propietary transaction information