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💰 May 2025: European HRTech Investment Update - M&A 🚀

Whilst quite a number of merger & acquisition deals in European HRTech for June 2025 have already been announced in the employee benefits space and other areas, M&A announcements in May have been lower than usual. The deal pipeline I am personally aware of in the HRTech space, however, looks strong and indicate both - private equity lead deals but also strategic deals with portfolio extension approaches. Furthermore, the are also several startups looking for a larger partner to exit to and grow faster in that ecosystem.

Here is the summary for May 2025:

𝐇𝐑𝐓𝐞𝐜𝐡 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬:

📝 FUNKE (DE) acquired everbay (DE), a social recruiting startup that supports the entire recruiting process with AI-based tools. With the complete acquisition of the startup, the FUNKE Media Group is further expanding its expertise in the HR tech sector. The acquisition is part of its strategy to offer an ecosystem of recruiting services that provides corporate clients with efficient solutions – from candidate search and screening to hiring: https://www.funkemedien.de/de/presse/ausbau-der-ki-expertise-funkes-regio-jobgruppe-uebernimmt-social-recruiting-start-up-everbay 

📝 Alleo (NL) acquired tos: the office service (NL). TOS has been active as a specialist in employee well-being since 2012 and distinguishes itself with a wide range of services in the field of vitality, convenience and work-life balance. With this step, Alleo strengthens its position as market leader in the field of personalized benefits for employees, and expands its customer base with leading organizations such as Allen & Overy, Cisco and Loyens & Loeff: https://www.linkedin.com/pulse/alleo-versterkt-positie-benefits-markt-met-overname-office-service-ime5e/?trackingId=c1%2BUrdRWRca8%2BM%2BB7L6jrQ%3D%3D

One deal was also communicated in the HR services, consulting & outsourcing space (less HR Tech) that is still notable as they are oftentimes partners in the ecosystem and also moving closer together by advanced tech:

📝 Morson Group (UK) acquired Principal Technical Services, Inc. (US), a US-based technical recruiter. The move marks a milestone in Morson's international growth strategy and broadens its capabilities across North America's energy, infrastructure, and advanced manufacturing sectors: https://venturecapital.com/headlines/m-a/morson-group-acquires-pts-advance-to-enhance-north-american-capabilities-v1

Additionally, some platforms also list the deals of Engagedly Inc (US) acquiring hiring tool (DE) and Amrop Rosin (BE) merging Amrop Canada and Humanis Executive Search (CA) that I included in my April 2025 round-up for May 2025.

🌎 Globally the most notable and also discussed HRTech deals in April include:

📝 Revelio Labs acquired Salary Board (SI), a leading provider of real-time compensation data and labor market insights. This strategic acquisition expands Revelio Labs’ extensive workforce datasets, improving its compensation analytics capabilities, and accelerates the company’s international growth in the HR analytics market: https://www.prnewswire.com/news-releases/revelio-labs-acquires-salary-board-to-expand-global-compensation-analytics-302444250.html

Congrats to all of those involved in these deals and all the best for the next iteration of the journey!

Let me know if I overlooked something in the comments below! ⬇


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