MOVE Guides, a cloud solution provider of global workforce relocation technology/services for businesses, is acquiring Estonia-based Teleport – a provider of relocation tools for individuals.
The acquisition was apparently the culminating event after a series of partnership activities between the two companies.
Both firms’ solutions help take the friction and cost out of employee moves although each firm offers quite different but complementary solutions.
Why this deal is interesting
This deal brings a number of machine learning/algorithm skills to MOVE Guides. The scarcity of these skills in the market today is reminiscent of the graphic/web design skills shortages in the late 1990s. At that time, software companies and consultancies routinely acquired graphic/web design firms at very high multiples just to get access to scarce talent.
These new skills should complement existing and acquired solutions of MOVE Guides as the kinds of data being evaluated include large datasets and unstructured data. (Workday did an analytics deal a couple of years ago involving the artificial intelligence/machine learning savvy folks at Identified. That deal brought a big analytics benefit to the company.)
This deal is also interesting as it takes MOVE Guides further into becoming a large player in a space with few players. Since traditional HCM (human capital management) and HR (human resources) solutions have almost no functionality like this, MOVE Guides itself becomes interesting as a potential acquisition target for those HR/HCM/ERP vendors looking to expand their functional footprint.
This deal’s impact could waver a bit with all of the Brexit activity and the travel restriction policies emanating from Washington lately. Nationalistic or populist sentiment could cool some employee movement activity and so crimp the company’s ability to grow as quickly as it might otherwise like.
When I asked MOVE Guides’ CEO about this, she indicated that companies/teams want information about more than just moves. For example, they want to know the best places to hold meetings, conferences, events, etc. The same tools that help companies or employees with relocation issues can help with other location concerns.
Keep an eye out for what happens next.
Image credit - via MOVE Guides press release