Despite economic uncertainty and its severe impact on the tech sector, HR tech is booming right now.
Hot on the heels of Silver Lake completing its acquisition of Qualtrics and Edenred buying Reward Gateway for €1 billion, frontline-focused HR tech company When I Work has acquired Lean Financial.
Founded in 2010, When I Work was focused on building workforce management tools for shift workers, and their small business employers. But over the past 13 years, it has grown significantly, and it now serves 200,000 employers globally, both big and small – examples include MedTronic, Dunkin’ Donuts, SoundCloud, Ben & Jerrys and Wendy’s.
As a result of the acquisition, these employers will now have access to Lean Financial’s fintech tools for flexible workforces, including on-demand pay.
The financial terms of the deal were not disclosed. The merger is expected to be completed in 2023, and Lean Financial’s CEO Tilak Joshi will now serve as general manager of financial services at When I Work.
Lean Financial is When I Work’s second acquisition in its 13-year history – the HR tech company bought canada-based Shifthub in 2015, also for an undisclosed sum.
New CEO at When I Work
When I Work’s decision to buy Lean Financial comes just six months after it hired a new CEO – Blake Adams.
Adams previously worked as an operating partner at Bain Capital Tech Opportunities. Bain Capital has invested $200 million in When I Work, and Adams had been a close partner with When I Work for many years.
Founder, chairman and interim CEO at When I Work, Chad Halvorson, commented: “Blake has been a critical When I Work partner over the last year and has brought key expertise in product-led growth.
“His background, vision, and enthusiasm for When I Work are perfect for leading our long-term business goals, and his empathetic leadership style makes him a great culture fit for our company.”
Talking about the acquisition of Lean Financial, Adams shared that companies are grappling with “employee retention and turnover issues”. At the same time, 60% of hourly workers can’t make ends meet, and with 82 million hourly workers in the US alone, it is a big problem.
“Our acquisition of Lean will allow us to have a direct impact on the financial lives of hourly workers, and it is a big step forward in our mission to ‘Make Shift Work Awesome.’
“By adding financial solutions that create happier, more productive teams, When I Work will offer additional tools to help…business owners retain their staff and ultimately drive better business outcomes.”
Joshi, Lean Financial’s CEO, added: “From day one, Lean’s mission has been to empower all flex workers with the cash flow and benefits they need to thrive.
“Flex and hourly workers will soon represent the majority of our workforce, yet financial services are still decades behind, resulting in financial hardship for the majority of workers.
“When I Work shares our commitment to filling in the gaps in our current financial system with a one-of-a-kind financial platform that couples work flexibility with financial stability.
“Our investors and team are thrilled with this outcome and are excited to partner with When I Work to accelerate access to best-in-class financial products to the millions of workers they support.”
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