IT recruiting firm Focus Cloud has acquired specialist Microsoft recruitment firm Cognitive Group. Together, the new Focus Cloud Group specializes in recruiting across the major cloud platforms, Microsoft, Workday, SAP, Salesforce and ServiceNow, as well as the life science and cybersecurity industries, the companies said.
This is technology M&A deal number 766 covered by ChannelE2E so far in 2022. See more than 2,000 technology M&A deals involving MSPs, MSSPs, and IT service providers listed here.
Focus Cloud acquires Cognitive Group
Focus Cloud, founded in 2015, is based in London, England. The company has 159 employees listed on LinkedIn. Focus Cloud’s areas of expertise include Workday HCM, recruitment, cloud, Workday, Workday Financials, Adaptive Insights, technology recruitment, ERP recruitment, HR transformation, digital transformation, Workday Payroll, Workday Studio, Workday Integrations and Workday Recruitment.
Cognitive Group, founded in 2007, is based in London, England. The company has 44 employees listed on LinkedIn. Cognitive Group’s areas of expertise include Microsoft Dynamics AX, Microsoft Dynamics CRM, Dynamics 365, Power BI, Azure, AI, tech recruitment, cloud, data platforms, infrastructure, business applications, data lakes, D365 CE, D365 F&O, data security, Power Platform, Power Apps and Power Automate.
The new Focus Cloud Group will be led by the CEO Lloyd Gordon, founder of Focus Cloud. The current CEO of Cognitive, Jonathan Keen, will be the chairperson for the new group. This partnership combines the experience and success Cognitive has with Microsoft’s recruitment solutions with Focus Cloud’s repertoire of Workday, SAP, Salesforce, ServiceNow and cybersecurity recruitment, the companies said.
Focus Cloud Group: Executive Perspectives
Lloyd Gordon, CEO, Focus Cloud
Jon Keen, CEO, Cognitive Group
Lloyd Gordon, Focus Cloud CEO, commented on the acquisition:
“When I set up the business in 2015, I did it with one thought in mind, to build a global cloud recruitment powerhouse that everyone could be proud of. Despite being hit by the global pandemic a few years later, the company has gone from strength to strength. Throughout the Covid crisis, we are committed to doing everything we can to support not only the growth of the business, but also our clients, candidates and our people. We have kept our promise to retain our people and have even taken on those made redundant by other recruitment firms. I believe in having faith in yourself and those around you and it really paid off, resulting in the company emerging from the pandemic in a strong financial position that made this acquisition possible.
Jon Keen, CEO of Cognitive Group, added:
“This deal bodes well for the future of both businesses as we aim to grow Cognitive and the wider Focus Cloud Group globally. Our staff own 20% of the Cognitive brand and this investment has enabled all shareholders to benefit, with further significant equity opportunities set for the next period of expansion. While there have been other opportunities to get brand investment in the past, the cultural fit has never really hit the mark for us, but with Lloyd and the Focus Cloud team, there is an incredible match with vision and values that make it a perfect fit. Since we launched Cognitive Group in 2007, our focus has always been on providing the best experience for our colleagues, our clients and our candidates, and Lloyd’s passion and enthusiasm not only for business but perhaps more importantly, the people who make Focus Cloud a success, reflect what the Cognitive Group believes. The team at Cognitive – who have done a tremendous job especially with the challenges of the past three years – all look forward to supporting the growth aspirations of our clients, our candidates and the new Focus Cloud Group in the coming years. year.”
IT Staffing and Recruiting M&A
Although IT staffing business valuations are rarely publicized, it is clear that strategic buyers, investors and private equity firms maintain a strong interest in the IT staffing market.
Why? Certainly, the lack of talent across cybersecurity, multi-cloud services, robotic process automation, artificial intelligence (AI) and other fast-growing areas has generated strong demand for IT staffing firms. Here’s a sampling of relevant M&A deals covered by ChannelE2E:
August 2022: Talent solutions company Digital Intelligence Systems (DISYS) has acquired MAKE Corporation, a professional and IT recruiting firm.
June 2022: Planet Group, backed by private equity firm Odyssey Investment Partners, has acquired Future State Consulting, a technology talent and consulting solutions company.
May 2022: Vega Consulting, an affiliate of American CyberSystems (ACS), has acquired technology staffing firm Volt Information Services.
January 2022: Motion Recruitment Partners, backed by private equity firm Littlejohn & Co., has acquired Matrix Resources, an IT staffing company focused on Agile & DevSecOps consulting, and telecom managed services talent.