October 1, 2019 – Acquisitions continue to make news in the recruiting industry, with a number of notable purchases in recent months. Recently, Heidrick & Struggles acquired Brazil-headquartered search firm 2GET. Terms of the transaction were undisclosed.
With offices in São Paulo and Rio de Janeiro, 2GET has 50 employees, including 13 consultants. The firm was founded in 2009. Paulo Mendes, a founder and executive board member of 2GET, will lead the newly combined Heidrick & Struggles operation in Brazil.
“The acquisition of 2GET allows us to significantly expand Heidrick & Struggles’ presence in Brazil, and we will be able to better serve the local marketplace, as well as our larger multinational clients with operations in the country,” said Krishnan Rajagopalan, president and CEO of Heidrick & Struggles. “Heidrick & Struggles and 2GET share a commitment to delivering our clients premium executive search services and human capital solutions, using innovative, data-driven tools and digital platforms. By bringing Paulo and the 2GET team on board, we are welcoming a seasoned executive search leader and a dynamic, forward-thinking team to the Heidrick & Struggles global network.”
“We are delighted to join the Heidrick & Struggles family and look forward to an exciting new phase of growth and innovation,” said Mr. Mendes. “Brazil is a vibrant market, and we see growing demand for executive search and leadership consulting services. With the combination of Heidrick & Struggles’ global reach and extensive portfolio of leadership advisory services, and our local market expertise and digital DNA, we can bring exceptionally differentiated services and offerings to our clients in Brazil.”
2GET offers executive search services at the board of director and C-suite levels across a number of sectors, including agribusiness, consumer and retail, financial services, industrial, life sciences, media, oil and gas, real estate and construction, and technology. In addition, the firm provides executive search services to family-owned businesses, private equity and venture capital portfolio companies. 2GET also provides leadership consulting and assessment services.
Brazil is the largest national economy in Latin America, the world’s eighth largest economy at market exchange rates and the seventh largest in purchasing power parity, according to the International Monetary Fund and the World Bank. It has a mixed economy with abundant natural resources and is projected to become one of the five largest in the world in the decades to come.
Data suggests that the economy in Brazil has turned a corner, after GDP contracted sharply in 2016. The manufacturing Purchasing Managers’ Index recorded the best result in over two years in March and both business and consumer confidence rested at multi-year highs. In addition, the country logged a record $7.1 billion trade surplus in March, aided by strengthening commodity prices.
Recent M&A activity
Acquisitions have kept the executive search industry in a state of flux. Here’s a sampling of recent acquisitions taken from the Hunt Scanlon Media archives:
Diversified Search, backed by investment dollars from private equity firm ShoreView Industries, has acquired Koya Leadership Partners, one of the nation’s top search firms in non-profit and higher education. Katie Bouton, Koya’s founder and CEO, will assume the role of president of Diversified Search.
Spencer Stuart has acquired MERC Partners, a leading executive search and leadership consulting firm based in Ireland. The addition of MERC Partners marks Spencer Stuart’s first client-facing team in Ireland and represents an important addition for its EMEA and global business.
ZRG Partners acquired London-headquartered search firm Holker Watkin. The firm will operate as a ZRG company, focused on supporting client needs for senior-level strategy professionals on a retained and interim project basis. The transaction is expected to add $11 million in annual revenues to ZRG and bolster ZRG’s direct presence in Europe.
Fresh on the heels of securing $25 million in private equity financing, Riviera Partners, a recruitment provider specializing in C-level engineering, product and design leader placements, continued its recent expansion with the acquisition of New York-based tech and product leader specialist WorthyWorks. WorthyWorks, led by founder Kyle Langworthy, specializes in searches for engineering and product leaders within the blockchain ecosystem.
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Andrew W. Mitchell, Managing Editor – Hunt Scanlon Media