Talent Management M&A—The Plot Thickens

As we approach the midpoint of 2015, an interesting story is emerging from an analysis of M&A activity in the HR consulting sector. Of the eight deals completed to date, seven are in the talent management space.

Liz DeVito | May 29, 2015

Liz-DeVito

As we approach the midpoint of 2015, an interesting story is emerging from an analysis of M&A activity in the HR consulting sector. Of the eight deals completed to date, seven are in the talent management space. This compares to the total of six talent management consulting deals completed in all of 2014, a year in which there was a healthy mix of deal activity across benefits, human capital management, and HR transformation consulting. The interesting part of the story is that most of the activity is coming from players that are relatively new to this market, a plot twist providing an element of surprise to the incumbent market leaders.

Of the Big 3 HR consultancies, Mercer and Towers Watson executed tuck-in acquisitions that strengthened assets and capabilities for specific consulting verticals. Towers Watson acquired Saville Consulting, adding a suite of online talent assessment tools for organizations that want technology-enabled solutions to identify and develop talent. The deal brings Saville's portfolio of blue chip clients to Towers Watson, including Jaguar, Land Rover, Siemens, and Vodafone. Meanwhile, Mercer acquired the UK's Kepler Associates in a move to expand its executive rewards consulting business in Europe.

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