We are pleased to present our latest quarterly report, offering insights into the dynamic developments within HR Technology throughout the third quarter of 2024. This edition spotlights key trends and M&A activity that have shaped the sector during Q3 2024.

• Rising demand for absence, leave, and attendance management solutions is prompting organizations to invest in integrated platforms that boost productivity, streamline HR processes, and maintain regulatory compliance, with 11 related transactions recorded this quarter.

• As companies strive to enhance hiring quality, the adoption of advanced assessment and background-checking tools is revolutionizing talent acquisition with faster, more accurate candidate evaluations.

• In Q3 2024, the HRTech sector saw a total of 101 transactions, marking a slight 6.5% decline from Q2.

• Talent Development emerged as the most active subsector, accounting for 37% of all deals, followed by Talent Attraction with a substantial 25% share and Workforce Management with 19% of the total deal volume.

• Cross-border transactions represented 35% of deals, with domestic deals comprising the remaining 65%. North America led regional buyer activity with 45 buyers, trailed by Europe with 40, while the Asia-Pacific region increased its engagement, contributing 14 buyers and 21 targets, compared to 11 buyers and 13 targets last quarter.

• Our HRTech index saw an increase in Q3 2024, moving in line with the NASDAQ's upward trend and reflecting a renewed alignment with the broader tech market's recovery.