Transactions in the Dutch HR market: the ten most remarkable deals of 2023
IN COOPERATION WITH INDUSTRY MAGAZINE FLEXMARKT
In the dynamic world of the HR market, acquisitions are an everyday occurrence. These transactions can be strategic, driven by market expansion, or stem from the ambition to create synergies. Although the number of transactions fell short of the record level in 2022, there was still plenty of activity in the market. Many transactions in 2023 were driven by an active buy-and-build strategy employed by various parties. In this article, we highlight the ten most remarkable transactions in the HR market in 2023.
1. Acquisition of EIFFEL by Towerbrook
The acquisition of EIFFEL by Towerbrook marks the largest deal in the HR market last year. Towerbrook, a leading British private equity firm, has secured a strong position in the Dutch market with this transaction. The previous delisting of DPA and its merger with EIFFEL paved the way for Towerbrook to implement its international expansion strategy. EIFFEL, as a local champion in the Netherlands, not only provides Towerbrook with a solid foothold in the country but also opens doors to further international opportunities.
2. Inflexion’s Minority Stake in YER
In contrast to the full acquisition of EIFFEL, Inflexion acquired a minority stake in YER. This strategic move allows the founder and major shareholder of YER to remain involved while benefiting from Inflexion’s expertise and network. With plans for a buy-and-build strategy, particularly focused on the German market, Inflexion appears determined to drive YER’s growth and strengthen its position as a market leader in the HR market.
3. Acquisition of Welten by Straco
Straco, with its investments in Forum Jobs and Labour Power Company, has considerable experience in the HR market. With a focus on specialised profiles within the financial sector and an active buy-and-build strategy, Welten fits seamlessly into Straco’s portfolio. This transaction underscores the growing trend of specialisation within the HR market and the search for niche markets to gain a competitive edge.
4. Acquisition of BlueTrail by Nordian
Nordian, a well-known player in the HR market with previous investments such as Redwave, has acquired BlueTrail, a company specialising in providing freelance IT professionals to the government. This niche position offers opportunities for further growth and diversification. The transaction also highlights the importance of specialisation and niche expertise in successfully navigating the competitive HR market.
5. Acquisition of Wiver by Logistic Force
Logistic Force, owned by investor Fields Group, has acquired Wiver, a company specifically focused on movers. With a strong focus on buy-and-build strategies, Logistic Force positions itself as a powerful player in the logistics HR market. Through targeted acquisitions like that of Wiver, Logistic Force can expand its service offering and provide a broader range of solutions to its clients.
6. Acquisition of Babbage Company by Synergia
Synergia, an investment firm with experience in the HR market, has acquired Babbage Company. This transaction complements Synergia’s previous investments, including Welten and The Human Network. With a specific focus on marketing and communication profiles for the government, Babbage Company strengthens Synergia’s expertise in this area, offering further growth opportunities in a lucrative market segment.
7. Acquisition of 4People by Pauwels Consulting
Belgian Pauwels Consulting, a contractor in the engineering and pharmaceutical sectors known for its buy-and-build strategy, has acquired 4People, a staffing agency for technical professionals. This transaction marks further consolidation of Pauwels’ position in the HR market. Additionally, Pauwels Consulting has brought on a new shareholder. Andera Partners took over from 3d investors last year.
8. Acquisition of Enginear by Copus Group
Belgian Copus Group has acquired Enginear, a recruitment agency with a specific focus on student workers and young professionals in engineering. As part of a buy-and-build strategy, this transaction strengthens Copus Group’s position in the technical HR market. By focusing on a specific segment of highly skilled professionals, Copus Group can increase its competitive advantage and capitalise on growth opportunities.
9. Acquisition of Upforce by VE Partners
Investor VE Partners acquired Upforce last year. Upforce has merged various companies within the labour migration market into one group. This strategic move enables VE Partners to create synergies and realise economies of scale in a competitive market environment. With a focus on labour migrants, Upforce positions itself as a key player in a growing market with increasing demand for international candidate sourcing.
10. Acquisition of 65Plus by Nestor
The acquisition of 65Plus by Belgian firm Nestor highlights the international dimension of transactions in the HR market. With a specific focus on the senior market, this transaction offers Nestor opportunities to expand its market position and diversify its service offering. The transaction embodies the trend of cross-border collaborations and consolidation within the HR market.
These ten transactions illustrate that acquisitions are an integral part of the dynamic HR market. With a mix of strategic considerations such as buy-and-build strategies, niche expertise, and international expansion, companies continue to strive for growth and competitive advantage in a rapidly changing market environment. Moreover, investors remain interested in this market due to its attractive revenue model and still have significant capital available. Therefore, we expect many more transactions to take place.
On 6 June, the Flexmarkt Revenue Ranking Top 100 has been announced for the 19th time. This Revenue Ranking is compiled annually by industry magazine Flexmarkt in collaboration with CFI.
