The HR technology market in 2024 was a story of resilience and growth amidst a rapidly changing global landscape. With the U.S. election dominating headlines and sparking conversations around the future of work, and consumer confidence rebounding from the challenges of prior years, the HR tech space has continued to demonstrate its vital role in shaping how organizations adapt to new demands.

From groundbreaking mergers and acquisitions to the introduction of innovative solutions that redefine talent management, payroll, and employee experience, 2024 has proven to be a year of transformation. These trends underscore the continued evolution of HR technology as a critical enabler of business success, especially as companies focus on skills, retention, and employee well-being in a competitive labor market.

One of my favorite activities every year is pulling together some of the insights of the previous year to highlight, and we’re already seeing 2025 movement right out of the gate with the Paychex acquisition of Paycor just announced. Looks like an exciting year ahead!

As we reflect on the industry’s progress, we also celebrate the standout leaders and products that are driving change. The HR Tech Awards, recognizing excellence across dozens of categories in HR technology, spotlighted companies and solutions making a significant impact.

  • If you’re an employer, check out the Awards for ideas on which solutions might be right for your needs.
  • If you’re a technology provider, definitely give the HR Tech Awards a deeper look as it has been instrumental in exposing high-quality solutions to potential buyers over the last five years. 

In this review, we’ll dive into some of the most noteworthy mergers, acquisitions, and market changes that shaped 2024 and provide insights into what they mean for the future of HR technology.

Credit where it’s due:

  1. If your company could be on this list in the coming year (meaning you want to acquire or get acquired) and you want a trusted partner, we work closely with the teams at Gotham Growth and Delancey Street Partners. Reach out if you would like a personal introduction. 
  2. I read the Starr Conspiracy’s work on a regular basis and respect their analysis of the market. You can sign up for their newsletter here.
  3. We follow the team at HRTech.sg–Sriram and team do fantastic, tireless work at a global scale. Highly respect them.  

Overall HR Tech M&A Trends and Insights

Three big things to note:

1) Lots of movement in the PEO space. We did some extensive research on this topic in 2024 and recently published a report in partnership with Insperity on the topic of HR outsourcing, payroll, and SMB HR trends. Overall, our data show that there is a knowledge/experience gap for many smaller organizations, and their HR teams need not just software but support and innovative services to help them grow and succeed.

I haven’t really listed deals below on this, but there are so many payroll companies and smaller PEOs with leaders reaching retirement age that are selling off the company. They may have 200 or 2,000 clients and sell the business to a larger provider that continues to aggregate and grow in that way. 

2) Employers look to providers for expertise, not just product. So often in our research interviews we hear from employers that are asking for insight, expertise, and input, not just another software solution. Any provider that claims their technology is “set it and forget it” is risking the long-term customer relationships they have.

If you’re one of the solution providers that’s trying to minimize services or limit support, take note. 

3) Haters gonna hate Acquirers are gonna acquire. If you look at this list you’ll see a few companies doing multiple acquisitions (Deel, Mitratech, Cornerstone), but you also see companies that have been on this list year after year using this as a growth or product strategy (Phenom, Bullhorn, HiBob). Expect that to continue, even for those relatively mature platforms (Cornerstone, Phenom) because they are trying to rapidly bring innovation capabilities their competitors will have difficulty matching.

We worked with an early stage company last year that had built a capable HRIS/HCM system to sell the code to another company that wanted a quick foothold in a specific area. If you’re looking to acquire or be acquired, we can help get you connected. 

Like this post? See our previous editions: 2023 recap 2022 recap 2021 recap

Key 2024 HR Technology Mergers and Acquisitions

Some of the more notable M&A activities we’ve looked at over the last year:

Talent Acquisition

  • JobGet acquired one of the longstanding frontline hiring job boards, Snagajob.
    This acquisitions gives JobGet unprecedented reach into the frontline hiring space and a key set of dedicated enterprise customers. 
  • Phenom Acquires Tydy: Phenom acquired Tydy to streamline and enhance employee pre-boarding and onboarding processes.
    This acquisition strengthens Phenom’s ability to offer end-to-end talent experiences, which is critical in today’s competitive hiring environment.
  • Workday Acquires HiredScore: Workday acquired HiredScore, an AI-powered talent intelligence platform, to strengthen its talent management capabilities.
    The integration of HiredScore’s AI strengthens Workday’s foothold in skills-based hiring and workforce planning.
  • Bullhorn Acquires TextKernel: Bullhorn, a staffing agency, acquired TextKernel, an AI-powered recruitment platform, to enhance its recruitment automation and matching capabilities.
    This acquisition addresses the market need for speed and accuracy in talent acquisition amidst a global talent shortage.
  • Sterling Acquired Vault and Was Later Acquired by First Advantage: Sterling, a background screening company, acquired Vault and subsequently was acquired by First Advantage, a leader in background screening solutions.
    This sequence of deals consolidates expertise in background screening, a critical component of secure hiring practices.
  • Randstad Acquires Torc: Randstad, a global staffing and HR services company, acquired Torc to enhance its freelance and remote work solutions.
    This acquisition reflects the rise of the gig economy and the growing demand for flexible staffing solutions.
  • Humanly Acquires Teamable: Humanly, a candidate engagement platform, acquired Teamable to integrate AI-driven sourcing and referral solutions into its offerings.
    The integration of AI-driven referrals reinforces the importance of leveraging networks for effective talent acquisition.
  • Daxtra Acquires PivotCX: Daxtra, a leader in recruitment automation software, acquired PivotCX to expand its candidate communication capabilities.
    Improving communication in hiring processes addresses a key pain point in reducing time-to-hire.

HR/HCM/Compliance

  • Aon Acquires NFP in the Benefits Space: Aon, a global professional services firm, acquired NFP to strengthen its employee benefits solutions.
    This acquisition highlights the growing focus on comprehensive benefits packages to attract and retain talent.
  • HiBob Acquires Pento: HiBob, an HRIS platform, acquired Pento to expand its payroll capabilities and integrate seamless processing for global clients.
    This deal reflects the increasing demand for integrated payroll solutions in multi-country operations.
  • Deel’s Acquisition Spree: Deel completed multiple acquisitions, including PaySpace, Hofy, Zavvy, and Assemble, to build a comprehensive HR platform incorporating payroll, compensation, and performance tools.
    Deel’s aggressive expansion positions it as a global leader in providing holistic solutions for remote and hybrid workforces.
  • ADP Acquires Workforce Software: ADP acquired Workforce Software to expand its workforce management capabilities and strengthen its product offerings.
    This move highlights the growing demand for capable scheduling and time/attendance tools that reduce administrative burdens and improve efficiency.
  • Mitratech Acquisitions: Mitratech acquired Syntrio, Mineral, and AssureHire to enhance its compliance, HR, and onboarding solutions.
    These acquisitions reflect the growing emphasis on integrating compliance and onboarding to mitigate risk and improve employee experiences.

Rewards, Recognition, Employee Experience

  • Blackhawk Network Acquires Tango: Blackhawk Network, a leader in payments and gift card solutions, acquired Tango to enhance its employee rewards and recognition offerings.
    This acquisition highlights the importance of employee recognition in improving workplace satisfaction and retention.
  • Edenred Acquires Reward Gateway: Edenred acquired Reward Gateway for £1.15 billion to offer comprehensive employee services and benefits.
    The deal underscores the increasing importance of employee engagement and recognition in retaining top talent.
  • CultureAmp Acquires Orgnostic: CultureAmp, an employee experience platform, acquired Orgnostic, a people analytics platform, to expand its workforce analytics capabilities.
    This acquisition aligns with the growing demand for data-driven insights to improve employee engagement and retention.

Learning, Productivity, and Talent Management

  • Ceridian/Dayforce Acquires eloomi: Ceridian, through its Dayforce platform, acquired eloomi, a learning and performance management solution, to expand its talent management offerings.
    Adding eloomi’s capabilities enhances Dayforce’s ability to deliver end-to-end talent lifecycle solutions.
  • SAP Acquires WalkMe: SAP, a provider of software solutions, acquired WalkMe, a digital adoption platform, to enhance user engagement and productivity within its enterprise systems.
    By integrating WalkMe, SAP aims to drive adoption of its tools and improve the overall user experience for its clients.
  • ClearCompany Acquires Brainier: ClearCompany, a talent management software provider, acquired Brainier to integrate learning management solutions into its platform.
    The deal highlights the increasing importance of combining talent management with robust learning and development capabilities.
  • Cornerstone Acquires SkyHive and Talespin: Cornerstone acquired SkyHive, a skills intelligence platform, and Talespin, a VR learning platform, to enhance its learning and development solutions. (see our notes from the Cornerstone analyst day with the Skyhive team)
    This dual acquisition positions Cornerstone as a leader in skills development and immersive learning technologies.

The Bottom Line

So many organizations, both buyers and providers, were holding their collective breath until the election had passed. Now that it’s behind us, the industry is poised for great things.

Curious what we do at Lighthouse?

  • We work with employers by providing research and advisory around 1) the complicated HR technology landscape, 2) the talent trends and practices that matter most to the modern workforce, and 3) executive presentations and workshops for internal talent and leadership teams on how the market is changing in their industry or demographic.
  • We work with solution providers and vendors that want to sell more product and serve more customers. We use a combination of advisory, industry insights, market intelligence, and custom research to support our partners. Contact us for more information or check out the HR Tech Awards.
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