Record-breaking HRtech valuations and deal volumes creating lucrative market for sellers, says Hampleton Partners
The first half of 2019 registered the largest ever transaction in HRtech history, when private equity firm Hellman & Friedman acquired Ultimate Software Group in May for USD11 billion.
Hampleton Partners’ latest analysis of global HRtech mergers & acquisitions activity shows that this is indicative of overall momentum in the sector, which also registered a spike in transaction volume with 66 recorded transactions and higher revenue multiples at 3.4x in 2H 2019.
Strategic acquirers were also active, including Salesforce, which recently acquired field service management ClickSoftware for USD1.4 billion.
Axel Brill, director, Hampleton Partners, says: “2019 has been a great year to sell a company in the HRtech space. Transaction volumes, multiples and valuations are the highest levels monitored for years.
“One of the main reasons for current levels is the high demand for attractive assets from private equity investors, leveraged by cheap debt. Indeed, in the past two years, venture capital and private equity investors have poured close to $14 billion into this market.”