Toronto-based HR software company Humi has been acquired by Australian HR platform Employment Hero in a deal valued at approximately $155 million CAD. The acquisition positions Employment Hero to establish a strong foothold in the Canadian market while retaining Humi's brand and operations.

While the exact purchase price remains undisclosed, Humi co-founder and CEO Kevin Kliman confirmed that the transaction involved a mix of cash and equity. Kliman described the deal as transformative, likening it to a “better version of Series C funding.” This acquisition enables Humi to scale operations with additional resources, while leveraging Employment Hero’s expertise in the HR technology space.

“In a lot of ways, the partnership with Employment Hero is like a better version of Series C for us,” Kliman said. “We get the funding that we otherwise would have gotten to grow the next stage of our company, incredible mentorship from a team that has just done what we want to do, and all the leadership within Humi is staying in place.”

Following the acquisition, Humi will serve as Employment Hero’s Canadian hub, retaining its existing workforce and brand identity. Kliman emphasized plans to significantly expand Humi’s operations in Canada. The startup, founded in 2016, offers HR, benefits, and payroll management tools, serving over 150,000 Canadian workers and facilitating more than $7 billion in wages to date.

The acquisition also brings complementary benefits to both companies. Humi’s localized features and knowledge of Canadian labor laws will enhance Employment Hero’s global offerings. Meanwhile, Humi gains access to Employment Hero’s advanced tools in areas such as onboarding and recruiting, allowing the Canadian company to accelerate its development in these domains.

Kliman highlighted the shared mission and cultural alignment between the two companies, both of which are founder-led. “Humi’s mission is to become the largest employment platform in Canada, while Employment Hero’s mission has become the biggest employment platform in the world,” he said.

Despite these synergies, Employment Hero’s reputation has been clouded by recent controversies. Australian media outlets have reported allegations of toxic workplace culture and abrupt strategy changes within the company. This includes scaling back expansion plans, pausing project development, and layoffs.

In addition, Employment Hero CEO Ben Thompson faced criticism for a controversial post on social media, which was perceived as inappropriate and disrespectful toward women in the startup ecosystem. While Thompson downplayed the post as a “bad dad joke,” the incident has drawn scrutiny to Employment Hero’s leadership.

Addressing these reports, Kliman expressed confidence in Employment Hero’s workplace culture. “I can say for certain that the culture is fantastic,” he said. “The culture within the company has been nothing but positive from what I’ve seen.”

As Humi transitions into its new role under Employment Hero, the combined company aims to deliver robust HR solutions across Canada while working to overcome lingering challenges in its Australian operations. With this acquisition, Employment Hero takes a significant step toward expanding its global footprint while enhancing Humi’s ability to achieve its vision for the Canadian market.