2024 has shown strong market traction in the HR Tech sector with billions of dollars invested across over 800+ transactions to date. AI adoption is rising fast and is one of several key trends driving growth in the sector.
Download the full report below for highlights and key stats on M&A and private placement activity, HR Tech market dynamics, notable deals, the top consolidators, and a market map covering key industry players in the fields of talent acquisition, human capital management and talent management.
Report highlights include:
- 800+ HR Tech transactions and $7.2bn invested equity (disclosed values) in 2024 YTD*.
- 40 M&A transactions in Q3 2024 in the sector, 37% of which happened in Europe. 179 private placements in the same period with 26% European share.
- Artificial Intelligence to support HR-related activities is quickly gaining momentum. 25% of companies have already implemented AI to support HR-related activities; 75% of companies have not yet done so, which indicates huge potential for providers in this field.
- Top AI use cases include recruiting, interviewing, handling administrative and recruitment-based tasks, personalized training and development programs, and performance management.
- The top 5 PE-backed consolidators are VISMA, access, IRIS, UKG and radancy.
- The top 5 public consolidators: dayforce, workday, adp, Paycor and paylocity.
- Many notable M&A HR Tech deals are highlighted in the report including Empion’s acquisition of Zalvus, Breakroom being acquired by ZipRecruiter as well as the majority recapitalization of GFOS with The Riverside Company which Drake Star advised on.
*as of 30.09.2024.
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