Global HR Tech Report Q4 2024: $7.2 Billion invested in 2024 YTD and expected market volume to reach ~$29 billion this year

Drake Star Technologies Research Summary

Key Points:

• Sector Expertise and Independence: Drake Star specializes in 8 core tech verticals and is one of the largest tech teams globally, with over 100 professionals across the US, Europe, and the Middle East. It is an independent boutique investment bank owned by its partners.
• Transaction Execution: Drake Star executes a wide range of transactions including strategic M&A, PE buyouts, private placements, buy-side deals, and carve-outs.
• Recent Awards: Drake Star has received numerous awards, including "9x Investment Bank of the Year," "40x Deal of the Year," and "6x Leadership Awards" in recent years.
• Recent Transactions:
  • A subsidiary of a portfolio company was sold.
  • Another portfolio company sold a subsidiary.
  • Portfolio companies made multiple acquisitions.
  • A subsidiary of a portfolio company was sold.

Financial Metrics:

• Share Price Performance: Over the last 24 months, the share price of Drake Star has shown significant growth, particularly in Q3 2024, with a 14% increase compared to the previous quarter.
• EV/LTM Revenue and EBITDA:
  • EV/LTM Revenue: 4.7x (Q3 2024), 7.9x (average over the last 24 months).
  • EV/LTM EBITDA: 17.4x (Q3 2024), 19.3x (average over the last 24 months).

Industry Trends:

• Market Growth: The Human Capital Management (HCM) and Talent Management sectors have seen significant growth, with the HCM/Talent Management index showing a 14% increase in Q3 2024 compared to the previous quarter.
• Key Players: Major players like SAP, Oracle, Dayforce, and Paycom have seen share price increases ranging from 17% to 21%, indicating strong momentum in the industry.
• Acquisitions and Funding: There has been an uptick in mergers and acquisitions and private placements in Q3 2024, with notable deals including the acquisition of Xcelerate Restoration Software by Teamfront and Onboarded by The Access Group.

Recent Developments:

• Acquisitions and Partnerships:

  • Xcelerate Restoration Software was acquired by Teamfront, enhancing value creation for founders.
  • Onboarded was acquired by The Access Group, allowing them to integrate usable AI into their recruitment processes.
  • Benify was acquired, enabling Zellis to offer enhanced product and service capabilities globally.
  • GFOS partnered with The Riverside Company to leverage growth potential internationally.
  • Breakroom was launched by ZipRecruiter to connect job seekers with businesses.

• Funding Rounds:

  • Significant funding rounds were completed in Q3 2024, with the largest being for HR Path.
  • European share of global deal-making activity in Q3 2024 was noted, highlighting the region's importance in the market.

Conclusion:

Drake Star Technologies is a leading player in the tech sector, recognized for its extensive expertise and successful transaction execution. The company has achieved significant growth and recognition, with recent acquisitions and partnerships driving further progress in the market.