Last week US-based SHL, the largest provider of psychometric and cognitive talent assessments, announced it would acquire its competitor, India-based AspiringMinds, a provider of employability evaluations and certifications with over 3,000 clients across the US and Asia-Pacific. The HRtech start-up relies on artificial intelligence and machine learning algorithms for talent assessments and “through this acquisition SHL plans to infuse Aspiring Minds’ artificial intelligence with SHL’s portfolio,” which consists of 80% of the FTSE 100 and over 50% of the Fortune Global 500.Employers are increasingly moving away from #resumes and #interviews towards more accurate, data-based predictors of post-hire performance. @TalentTechLabs has the latest development: Click To Tweet
This event is no surprise to Jonathan Kestenbaum, Managing Director of Talent Tech Labs (TTL).
“This acquisition aligns directly with our thesis that we will start seeing skill assessments, behavioral assessments, and video interviewing sub-verticals combine into a single talent intelligence platform.”
But, why is this happening? TTL’s Director of Research, David Francis, explains.
@SHLglobal acquires Aspiring Minds in a move @TalentTechLabs saw coming! Here's more: Click To Tweet
“We have long been bullish on the assessments vertical, as we think employers are increasingly moving away from resumes and interviews towards more accurate, data-based predictors of post-hire performance. We think the SHL/Aspiring Minds deal is probably a playbook we will see more of — large, established player picks up newer, innovative solution—while there is lots of innovation in the assessments space, the market is probably oversaturated with point solutions and legacy vendors have been slow to change their offerings, a recipe for consolidation.”
Overall, the deal seems to be a win-win. TTL President Brian Delle Donne, adds:
“Since SHL was acquired from Gartner in 2018 by UK private equity investor Exponent, they have the backing to expand their product range and reach. They have a very robust assessment business for a very long time. Aspiring Minds is a pip squeak by comparison, but brings a long list of clients from China, Philippines, and Middle East. As a result, the purchase of Aspiring Minds is a tuck in with the assessment and leadership development services.”