HR Path acquires NGI to boost North American footprint
PARIS, FRANCE and ILLINOIS, UNITED STATES — Global HR consulting firm HR Path has acquired United States-based Next Generation, Inc. (NGI), marking its third stateside acquisition in just two months.
HR Path provides end-to-end human capital management (HCM) services, specializing in advisory, implementation, and outsourcing for major software platforms including SAP SuccessFactors, Oracle HCM, and Workday. With over 2,500 employees and annual revenue of approximately $250 million, HR Path has established itself as a significant player in the HR technology consultancy space, aiding businesses in modernizing their HR processes.
While, Next Generation, Inc. (NGI) is a United States-based consultancy focused on HR program management and systems integration. With 24 years of operation, NGI has built a reputation as a specialist implementation partner within the North American market. The firm generates under $5 million in revenue.
“This strategic union brings together two organizations known across the Americas for delivering exceptional quality and value,” said François Boulet, Co-founder of HR Path.
Acquisition solidifies market dominance
This acquisition is a move by HR Path to aggressively expand its footprint and service capabilities in the crucial North American market. The purchase of NGI, following the recent integrations of PredictiveHR and GroupeX, positions HR Path as a strong workforce management provider.
This continued consolidation strategy enhances the firm’s ability to serve a broad spectrum of clients with end-to-end human capital management (HCM) solutions. The acquisition also promotes the delivery capacity and national presence of HR Path.
In the case of the competitive HR consulting and human resources information system (HRIS) industry, this consolidation pattern implies that in the future, larger, global organizations with full-service offerings and massive partner networks may become more dominant, potentially increasing the entry barrier to smaller and specialized firms.
Union focused on client value, global scale
Boulet highlighted the fact that there is a strong partnership between the two entities, both of which are reputable go-to partners in the HCM arena.
“By joining forces, we’re not just expanding our global footprint, we’re creating a powerhouse of talent and expertise that will drive outstanding outcomes for our clients worldwide,” said Boulet.
On the other hand, Darrel Higueros, CEO of NGI notes that, “Joining forces with HR Path expands our global reach and scales our industry and HCM expertise, enabling us to support a broader spectrum of clients while creating new growth opportunities for our people,” highlighting the impact of this acquisition on them.
NGI will continue its business under its own name as Next Generation, an HR Path Company, and the company will maintain its leadership team and staff in the same positions, ensuring a smooth transition.
The proposed tactic will ensure the extra value and reputation NGI has established within over two decades is retained, and the embedded software expertise in the program management and Systems Integration is incorporated in the global advisory, implementation, and services lines of HR Path.
Industry consolidation transforms HR tech landscape
The move signals a broader trend of rapid consolidation within the global HR consulting and HRIS implementation sector.
Niche companies are now under large pressure to specialize further or even form their own strategic alliance to remain competitive, as customers are looking at providers who can offer an end-to-end solution across various platforms.
This action highlights the nature of HR transformation services and reorganizes the nature of how these services are delivered and acquired worldwide.
