Ceridian has entered into a definitive agreement to acquire Toronto-based employee recruitment and management software start-up, Ideal. The transaction is expected to close tomorrow, April 30. The two companies refused to disclose the financial terms of the transaction.
Once the acquisition is completed, Ceridian intends to integrate Ideal into its Dayforce platform in order to “optimize” the company’s talent management offering. Ideal’s artificial intelligence (AI) -based system aims to improve human resources software to help teams make more accurate, efficient and fairer decisions about talent. Ceridian is a human resources (HR) software company based in Toronto and Minneapolis.
For Ideal co-founders Somen Mondal and Shaun Ricci, the deal is set to become their second successful tech release in less than 10 years.
After partnering with Ceridian for approximately two years, Ideal is set to become part of Ceridian as the startup seeks to expand its reach and accelerate its product roadmap “with increased resources.” According to Shaun Ricci, COO and co-founder of Ideal, the company has already built a “great relationship” with the Ceridian team and management.
“We think this is a huge victory for Toronto and the Canadian tech ecosystem,” Somen Mondal, co-founder and CEO of Ideal, told BetaKit. “Essentially, two Canadian companies are joining forces. There aren’t many Canadian tech companies operating at the Ceridian scale. Our product and our team will benefit greatly from being able to work at this scale. ”
Mondal added that the move was also “very suitable from a product point of view,” given that it will allow Ideal to apply its machine learning and artificial intelligence capabilities to “the enormous amount of
end-to-end HR data ”, which he said will allow the startup to expand its product and differentiate Ceridian and Dayforce in the market.
According to Ricci, over the past three years, Ideal has experienced 100% annual growth. The startup’s software automates administrative tasks, filters and matches talent, and delivers data-driven insights on diversity, equity and inclusion.
Mondal and Ricci co-founded Ideal in 2014. The deal is set to become their second successful tech release in less than 10 years, after the two sold their previous company, the enterprise security software start-up. Toronto-based Field ID at Master Lock in 2013 for an undisclosed amount.
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“With the global scale of Ceridian’s modern human capital management platform, we can now apply our technology to the entire talent lifecycle, from application to retirement,” Ricci wrote. Access to Ceridian’s clients, he said, will help Ideal bring fairness and fairness practices to more hiring decisions.
As part of the deal, Ideal’s 32-person team are expected to remain in Toronto. Under the Ceridian umbrella, Ideal will aim to contribute to machine learning and AI initiatives within the enterprise.
Toronto-based tech investor Michael Hyatt, Ideal’s first investor, told BetaKit he was “thrilled” with the deal, which he called a “full AI acquisition.”
“It was a very smart investment from Ceridian, who wanted to take a leap into AI,” Hyatt said. For Ideal, he added, Ceridian “brings incredible reach”.
“Ceridian used [Ideal’s] technology and thought it was fantastic, so they acquired the business, ”said Hyatt. “It was a very logical acquisition because they already knew how awesome it was.”
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In 2017, Ideal raised a $ 3 million funding round led by former CEO and former group head of Scotiabank’s Global Banking and Markets division Mike Durland, BlueCat founders Michael Hyatt and Richard Hyatt, and the MaRS Investment Accelerator Fund. In 2015, Ideal raised $ 2.5 million in funding.
“At Ideal, we are passionate about providing our clients with powerful and actionable workforce insights to drive fair, accurate and equitable decision-making and to help them achieve long-term success.” , Mondal said.
In today’s global job market, Ceridian said, attracting the best talent can be difficult, especially given “rapidly changing recruiting needs,” and technology can facilitate that process. In February 2020, Ceridian announced plans to hire 2,000 new employees across Canada over the next five years.
Photo of Ideal Co-Founders, COO Shaun Ricci and CEO Somen Mondal, courtesy of Ideal