HR Technology Sector Q1 2021 M&A Review

In this report, we highlight 52 of the 63 M&A transactions within the HRTech sector which completed during the first quarter of 2021. Overall deal volumes have considerably picked up since the last quarter, growing by 80% and reaching their highest levels since the COVID pandemic started – with volumes 37% higher than in Q1 2019.
Specific market segments have been gaining in popularity and driving M&A activity during the COVID-19 pandemic. Unsurprisingly, these align with the shift toward remote working and include tools and platforms for managing remote hiring, performance, and learning & development. Notably, workforce management solutions continued to be a hot area in M&A, with 29% of identified deals taking place in this space, followed by talent attraction and talent development solutions, representing 27% and 22% of the total deal volume, respectively.