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Fresh off a Jan. 1 acquisition with two more potentially this month, Employer.com continues to see merger and acquisition opportunities in human resources technologies.
The San Francisco company had largely focused on acquiring HR technologies prior to buying fintech Bench Accounting, an online bookkeeping services provider based in Vancouver, British Columbia, earlier this month for an undisclosed price. With Bench and other potential acquisitions, Employer.com now plans to expand from HR tech into ERP (Enterprise Resource Planning), providing software that integrates all the processes needed to run a company, says Matt Charney, chief marketing officer of the company, which also owns Recruiter.com and Bountyjobs.com.
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As for its acquisitions, Employer.com is expected to close soon on a $30 million deal to acquire Level, a dental and vision benefits technology provider, according to a source with knowledge of the negotiations. Like Bench, New York-based Level had closed around yearend.
Employer.com also expects to close on a third acquisition for 2025 within the next couple of weeks, Charney says. He declined to name the company.
Employer.com still sees acquisition opportunities in HR tech because of the substantial amount of consolidation and closures in the space, leaving many of the venture-backed companies with uncertain futures, Charney says. HR tech companies in general have attracted a great deal of investment — with 47,000 venture-capital-backed companies in the space — and little to show for it in investment returns, he says: “It’s an insanely competitive market.”
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Added to the conditions within HR tech is the fact that valuations for software-as-a-service technologies in general have been plummeting as investment pours into artificial intelligence solutions, Charney says.
That’s created buying opportunities for Employer.com “to pick up great technologies that have struggled to find a customer base because they’re point solutions,” Charney says. “Some of the best products in our space are ones we haven’t ever heard of.”
From 2000 to 2022, the HR tech space had a “weirdly large amount” of startups pitching solutions for talent acquisition or analytics, Charney says. “You just had an incredible amount of VC pouring in to develop products for what’s not historically been a technology-forward function,” he says.
But many of those products ran into fundamental issues with competition and finding the right fit with market demands, Charney says.
“Often you’ll have some genius products in terms of engineering. But it’s the story of: ‘I’m an MIT grad who was hired as an engineer; I got really frustrated with the process, so I built the software,'” he says, without first finding the market.
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Employer.com has been building since 2012, when its owner and CEO, Jesse Tinsley, started the recruiting-as-a-service firm Job Mobz. He then bought up smaller staffing companies before acquiring Recruiter.com Ventures, a Nasdaq-listed recruiting services tech platform, in 2024.
Later in 2024 Tinsley acquired Employer.com, an international payroll, staffing and compliance services provider, for $450,000. Employer.com’s pre-point-of-apply services now include vendor and third-party recruiter management, employer branding and recruitment marketing, job advertising, recruitment process outsourcing, recruiters on demand, project hires, embedded recruiters and strategic partnering for talent acquisition workforce planning projects. Its post-point-of-apply services include payroll, employer of record, compliance, tax, bookkeeping and general ledger and performance creative marketing services.
The company’s goal through its M&A activity is to find companies with core offerings, such as a customer base or proprietary technology, to serve a niche that’s been unfulfilled, Charney says.
“We’ve been looking now for quite some time at how we can take a market that is slowing down and use that to our advantage,” he says. “Now the floodgates are opening and we have been positioning ourselves for this moment.”
It seems that most of the consolidation in the HR tech space has already occurred, and that the startup companies remaining have backing from the big-player VC firms or large companies like Workday or Oracle, Charney says.
“Either you’re in an ecosystem or you’re out of luck. Hence, we’re building an ecosystem,” he says.
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