M&A advisory for HCM software companies
HCM software M&A has been driven by strategic consolidation at the major payroll and HR platforms and an unusually active PE community building HCM portfolios. Deals price on PEPM economics, embedded financial services revenue and the durability of mid-market and SMB renewal patterns.
Active strategic buyers include Workday, ADP, Paychex, UKG and the major HR platform consolidators, alongside an unusually active PE community building HCM portfolios across payroll, benefits and talent acquisition. Flow has direct access to the HCM strategic acquirers and PE platforms that are active buyers in this category.
Flow team has relevant sector experience and has worked with HCM companies across payroll and HRIS, benefits administration, talent acquisition and ATS, performance, learning and employee experience, and PEO and EOR platforms.
"HCM software" KPIs M&A buyers look at
Key metrics strategics and PE buyers look at when analayzing HCM software M&A targets
PEPM ARR
Employees under management
Net retention
Logo retention
Embedded financial services revenue
Float / interest income
Module attach
CAC payback
ARPU per customer
Gross margin
HCM software valuations in May 2026
Public HCM software comps trade at 2.2x EV/Revenue. Median revenue multiple across HCM software M&A deals was 6.1x in the last 12 months.
2.2x
Median EV/Revenue as of May 2026 for public HCM software companies
4.7x
SAP is the highest valued public HCM software company based on EV/Revenue (excluding outliers)
6.1x
Median EV/Revenue across HCM software M&A deals in the last 12 months
13x
Median EV/Revenue across HCM software VC rounds in the last 12 months
Key recent HCM software M&A deals
$12B acquisition of Dayforce by Thoma Bravo was the largest HCM software M&A transaction completed in the last year.
See all HCM software M&A deals| Logo | HQ | Description | Buyer | ||||
|---|---|---|---|---|---|---|---|
Aug-25 | Dayforce |  | Dayforce is Ceridian's flagship cloud-based human capital management platform serving organizations worldwide from its Minneapolis headquarters. The single-architecture system unifies payroll, HR, benefits, workforce management, and talent acquisition for companies ranging from SMBs to global enterprises like McDonald's and AstraZeneca. Dayforce processes billions in payroll annually across 100-plus countries, featuring AI-driven scheduling and compliance tools. | Thoma Bravo | $12B | 6.6x | |
Jul-25 | NEOGOV | | NEOGOV is a Irvine-headquartered SaaS provider of human capital management software for 7,000 public sector agencies, educational institutions, and 5,500 public safety organizations across the United States. Its cloud suite covers recruiting, onboarding, performance management, and compliance tracking with integrations to ADP and UKG. Founded in 1998, NEOGOV processes over 2 million job applications yearly and maintains the largest public sector talent network. | EQT | $3.0B | - | |
May-25 | Global Payments (payroll unit) | | - | Acrisure | $1.1B | - | |
Aug-25 | Paradox | | Paradox is a Scottsdale-headquartered conversational AI platform that automates recruiting processes for HR teams. Its flagship product, Olivia, conducts candidate screening, answers inquiries in real time, schedules interviews, and delivers personalized experiences at scale. The company serves major employers including McDonald's, General Motors, and PepsiCo, enabling talent acquisition professionals to prioritize human interactions. Founded in 2016, Paradox integrates with applicant tracking systems to streamline hiring from sourcing to onboarding across industries like retail, hospitality, and manufacturing. | Workday | $1.0B | 4.8x | |
Jul-25 | Beekeeper |  | Beekeeper is a Zurich-based mobile communication platform designed for frontline and deskless workers, enabling real-time messaging, task management, and broadcasts across multiple languages and locations. The platform integrates with over 100 third-party tools such as HR systems, time clocks, and safety apps to streamline operations in industries like manufacturing, hospitality, and retail. Beekeeper supports organizations in 18 languages, fostering employee engagement through features like newsfeeds, surveys, and compliance training. Founded in 2011, it serves global enterprises including Coca-Cola and TUI Group from its headquarters in Switzerland. | LumApps | $1.0B | 6.7x | |
Nov-25 | Decision HR | | Decision HR is a U.S.-based firm offering integrated payroll processing, HR administration, employee benefits, risk management, and compliance services. It supports mid-market companies with ACA reporting and workers' compensation programs. | Coalesce Capital | $882M | - | |
Aug-25 | Guideline | | Guideline is a San Francisco-headquartered 401(k) provider offering automated plan administration, enrollment, recordkeeping, investments, compliance, and reporting for small to mid-sized businesses. The service features flat per-participant fees instead of asset-based pricing. Guideline integrates payroll systems and delivers participant education through mobile apps and dashboards. | Gusto | $600M | 4.3x | |
Feb-26 | T | Tieto (Edlevo and HR & Payroll products) |  | Tieto is a Helsinki-headquartered provider of specialized software for education through its Edlevo platform and comprehensive HR and payroll solutions. As part of TietoEVRY, the company delivers digital engineering services and industry-specific applications to clients across public and private sectors globally. | EG | $112M | 3.0x |
Mar-26 | Heads HR |  | Heads HR is a HR company for schools. | Sapphire HR | $100M | - | |
Jul-25 | Thinkings |  | Thinkings is a Tokyo-based HR technology company offering the Sonar ATS recruiting platform. Centered in Japan since 2017, it provides AI-driven tools for talent sourcing, candidate matching, and workflow automation to enterprises in tech and manufacturing. Thinkings supports over 500 client firms in optimizing hiring processes and fostering creative work environments. | BizReach | $96M | - | |
Feb-26 | OTS |  | OTS is a Greek IT firm developing enterprise software for public sector and private organizations, including systems for financial management, HR, payroll, scheduling, and document workflows. | Real Consulting | $56M | - | |
Jan-26 | 365talents |  | 365talents runs a talent management platform leveraging machine learning to identify employee skills and match them to internal jobs, projects, and training. Paris-based, it enables personalized career development for enterprises, boosting retention through data-driven opportunity recommendations and skill gap analysis. | Docebo | $55M | 6.1x | |
Jul-25 | Hourly | | Hourly is a Palo Alto-headquartered insurtech platform founded in 2018 for managing workers' compensation, payroll, and time tracking. Tailored for small businesses employing hourly workers, it automates compliance with state regulations across 50 U.S. jurisdictions through integrated insurance quotes and payment processing. | weSure | $53M | 15x | |
Jun-25 | Lathem Time | | Lathem Time is a provider of electronic time clocks and workforce management software tailored for small businesses. The Atlanta-based company offers products like the LT-1000 biometric time clock and cloud-based TimeStation software for tracking employee hours, PTO, and scheduling. With roots dating back to 1919, Lathem Time serves thousands of customers across North America through its e-commerce platform and authorized dealers, including integrations with payroll systems such as QuickBooks and ADP. | Asure Software | $40M | - | |
Jun-25 | Bubty |  | Bubty is a cloud-based Freelance Management System headquartered in Tel Aviv that streamlines contractor onboarding, compliance, and payments for enterprises. The platform automates misclassification risk assessments under local labor laws, integrates with payroll systems like ADP and Workday, and facilitates cross-border payouts in 190 countries via partnerships with Payoneer and Wise. Adopted by tech firms and agencies in Europe and North America, Bubty supports scalable workforce expansion without dedicated HR overhead. | Upwork | $20M | - |
Most active buyers of HCM software companies
Zvoove Group, HR Path and Deel are the most active acquirers of HCM software companies in the last three years.
See all HCM software acquirers| Logo | HQ | Description | Key acquisitions | ||
|---|---|---|---|---|---|
Zvoove Group |  | Zvoove Group is a German software provider for personnel management and event services. Based in Berlin, it offers cloud-based platforms for shift planning, applicant tracking, time tracking, and event staffing solutions. Zvoove serves hospitality, retail, and event industries across Europe with mobile apps for employee self-service and analytics for workforce optimization. | adata SoftwarePlan4Flexmywage+2 | 6 | |
HR Path | | HR Path is a global consultancy with over 500 consultants across North America, Europe, and the Middle East, dedicated to HR systems integration, outsourcing, and business consulting. As an authorized reseller of SAP SuccessFactors, HR Access, Oracle HCM, Cegid, Sage, and Talentsoft in France, it also offers proprietary tools like BiHRdy for business intelligence, Pandore for HR, payroll, and time management, and Geef for talent management. Serving CAC 40 companies, SMEs, mid-sized firms, and public sector entities via hr-path.com. | TEC360 PeopleEnforce LLCPredictiveHR+2 | 5 | |
Deel | | Deel is a San Francisco-headquartered global workforce management platform handling payroll, compliance, HR, and payments for employees and contractors in over 150 countries. The service includes Employer of Record and Contractor of Record options, automated invoicing, multi-currency transfers, and integrations with HRIS systems like Workday and BambooHR, ensuring local tax and benefits adherence. | OmnipresentSafeguard Global (payroll unit)Assemble+2 | 5 | |
Visma |  | Visma is an Oslo-headquartered SaaS group delivering accounting, HR, and administration software across Northern Europe and beyond. Organized into Software SMB, Software Government & Large Accounts, and Business Process Outsourcing divisions, it powers operations for 1.7 million customers in 13 countries with products like Visma.net ERP and eAccounting. The company maintains a presence in Norway, Sweden, Finland, Denmark, and expanding markets. | TalanaLara AIRex++2 | 5 | |
Humanly.io | | - | AnthillQualifiSprockets+1 | 4 | |
UKG | | UKG is a global leader in human capital management software, delivering HCM suites, payroll processing, HR service delivery, and workforce management tools. Its platforms integrate scheduling, timekeeping, and compliance features for enterprises across retail, manufacturing, healthcare, and public sectors. UKG serves organizations worldwide from its US headquarters. | Inova PayrollChattrShiftboard+1 | 4 | |
Phenom | | Phenom is an Ambler, Pennsylvania-headquartered developer of the Intelligent Talent Experience platform powered by AI for recruitment and employee management. The platform includes tools like Phenom Career Sites, AI Chatbots, CRM systems, AI Scheduling, video interviews, and internal talent marketplaces serving over 500 enterprises worldwide including Bayer and Delta Air Lines. Founded in 2010, Phenom processes millions of candidate interactions annually and integrates with major HRIS systems such as Workday and SAP SuccessFactors across North America, Europe, and Asia. | Plum.ioAppliedEdGE+1 | 4 | |
Epassi Group | | Epassi Group is a Finnish fintech provider of mobile payment platforms for employer-funded benefits such as meals, transport, exercise, culture, and medical services across the Nordics. The Epassi app facilitates seamless transactions at partnered merchants while handling compliance and reporting for businesses. Headquartered in Helsinki, the company operates in Finland, Sweden, and Norway, supporting thousands of employers and a vast merchant network. | AlleoVip DistrictZest | 3 | |
Humanforce |  | Humanforce is a workforce management software provider offering scheduling, time tracking, and compliance tools for frontline industries. Sydney-headquartered with operations in Australia, New Zealand, and Europe, it serves over 6,000 organizations including hospitality chains like Accor and retail groups. The cloud platform integrates with payroll systems such as ADP and Xero, automating shift rostering and fatigue management. Established in 2004, Humanforce processes millions of shifts monthly. | EmprevoShiftMatchintelliHR | 3 | |
Valsoft |  | Valsoft Corporation is a Montreal-headquartered firm acquiring and scaling vertical market software businesses. It targets established SaaS providers in niche industries, integrating technology services to expand customer reach and operational efficiency across sectors like public safety, healthcare, and construction. | KidKare by MinuteMenuEasy EmployerWageloch+2 | 3 |
Founders and investors we've worked with
We've supported winning builders across HCM software and beyond.
MAILINGWORK
We acted as exclusive sell-side advisor to MAILINGWORK, a Chemnitz-based email marketing software platform, on its sale to French digital marketing leader Positive Group.
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TestSolutions
We acted as exclusive financial advisor to Swiss PE firm Patrimonium on its majority stake acquisition of TestSolutions, a Frankfurt-based software testing and IT services provider.
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Resillion
We provided buy-side advice to a dominant TIC industry player on the carve-out and acquisition of Resillion (fka Eurofins Digital Testing), a Hasselt-based digital testing, cybersecurity and forensics provider.
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Digital Asset Management Software Provider
We provided buy-side advice to Byron Capital Partners on its acquisition of a leading European digital asset management (DAM) software platform.
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Boryszew
We provided buy-side advice to Boryszew, a Warsaw-listed diversified industrial group across automotive, metals and chemicals, on industrial software market mapping and target screening for its buy-and-build strategy.
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