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Grupa Pracuj SAGrupa Pracuj wants to accelerate entry into post-hire market via acquisitions
Listed HR group Grupa Pracuj wants to accelerate its entry into the post-hire market through acquisitions; it will look for targets in Europe, company representatives told a videoconference following the publication of first quarter's results. They assessed that Poland is an attractive market in terms of growth potential, but there are more acquisition opportunities in Western Europe.
"The market where we operate in the area of SaaS pre-hire (pre-employment - PAP) is worth about EUR 300 million in Poland and DACH, and the entire HR Tech market more than EUR 3 billion," CEO Przemyslaw Gacek told the videoconference.
"In contrast, the post-hire market is ten times larger than the one we operate in. Our strategy is to accelerate our entry into this market by limiting the associated risks and, nevertheless, focus on appropriate acquisitions," he added.
In its strategy published on Tuesday, Grupa Pracuj said that organic growth is to be complemented by selective acquisitions, focusing primarily on the HR Software area. Currently, the group's operations in the pre-hire area include softgarden and eRecruiter .
Grupa Pracuj assumes that the share of revenue from the HR Software area will gradually increase in the Group's revenue structure to reach around 50 percent in the long term, up from 27 percent in 2024.
"In 2024, the HR Software area was 27 percent of our business. We assume that this share will grow because of the faster organic growth of our current projects, but we also see that it will be easier to invest in the SaaS area. We are looking at the market, we are looking at the market, so acquisitions can happen," Gacek said.
The group will look for potential acquisition targets in Europe - primarily in Poland and the DACH region but does not rule out considering projects from other countries.
"The HR Software market in Poland and DACH is very attractive. Because of its position and situation, the Polish market is more attractive, so we can do more here. As we look at the overall market, in Poland it will grow 12-13 percent and in the DACH region 7-9 percent," the CEO assessed.
"The Polish market is number one in this category in terms of growth potential, but it is quite small compared to, for example, what is happening in the DACH region and there are not a lot of companies here. We are looking at the whole market, but if we want to build value in a more meaningful way, however, we will have to look west of Poland," he added.
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