Harpreet Grover was at a crossroad last year -go it alone or get acquired. His hiring assessment company, CoCubes, which had 600 customers and $2 million in funding from Ojas Ventures, was in acquisition talks with HR consultancy and long-term customer, Aon Hewitt. But a private equity fund was offering a $10 million funding round. “It was a difficult decision -join a big firm or take the funding and stay independent,” says Grover. Finally, the Gurgaon-based company chose acquisition by Aon in an all-cash deal. “We wanted to go global. If we wanted to reach that end goal faster, we had to join a bigger firm,” says Grover. Overnight, CoCubes had access to 10,000 companies through Aon’s resources. As innovation becomes key to the way business is done, legacy firms are taking the merger and acquisition (M&A) route to leverage the latest technology from smaller startups. According to analytics firm Tracxn, almost half of the 45 M&A deals between a tech startup and a larger offline player happened in or after 2015. This reflects a global trend: In 2016, US retailer Walmart purchased online store Jet.com for $3 billion, while General Electric’s software division bought ServiceMax, a cloud-based provider of… Read full this story
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