Ceridian to acquire Toronto talent intelligence startup Ideal
Ceridian has reached a definitive agreement to acquire Toronto hiring and employee management software startup Ideal. The transaction is expected to close tomorrow, on April 30. Both companies declined to disclose the financial terms of the deal.
Once the acquisition is complete, Ceridian intends to integrate Ideal into its Dayforce platform in order to “optimize” the company’s talent management offering. Ideal’s artificial intelligence (AI)-powered system aims to enhance human resources software in order to help teams make more accurate, efficient, and fair talent-related decisions. Ceridian is a Toronto and Minneapolis-based human resources (HR) software company.
After partnering with Ceridian for about two years, Ideal is set to become part of Ceridian as the startup looks to expand its reach and accelerate its product roadmap “with increased resources.” According to Shaun Ricci, Ideal’s COO and co-founder, the company has already built a “great relationship” with Ceridian’s team and leadership.
“We think it’s a huge win for Toronto and the Canadian tech ecosystem,” Somen Mondal, Ideal’s co-founder and CEO, told BetaKit. “Essentially, two Canadian companies are joining forces. There aren’t that many Canadian tech companies that operate at the scale that Ceridian does. Our product and team will greatly benefit from being able to work at this scale.”
Mondal added that the move is also “a great fit from a product standpoint,” given that it will allow Ideal to apply its machine learning and AI capabilities to Ceridian’s “massive 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 marketplace.
According to Ricci, during the past three years, Ideal has experienced 100 percent year-over-year growth. The startup’s software automates administrative tasks, screens and matches talent, and provides 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 exit in less than 10 years, after the two sold their previous company, Toronto-based enterprise security software startup Field ID, to Master Lock in 2013 for an undisclosed amount.