Avionté acquired AkkenCloud. Both firms are end-to-end providers of front- and back-office software for staffing firms.

“We are thrilled to welcome AkkenCloud customers and employees to the Avionté community, which will expand our dedicated team of associates and the more than 1,000 staffing agencies leveraging Avionté’s enterprise staffing platform,” Rishabh Mehrotra, CEO of Avionté, said in a press release.

The deal closed Aug. 21. Terms of the transaction were not announced.

Along with front- and back-office software, Avionté offers a VMS and a mobile app for staffing firms that enables automation of the onboarding process for workers, scheduling ability and a job board.

“This is evidence of the ongoing convergence and consolidation in the staffing technology space,” said Kevin O’Neill, technology research director at SIA. “Staffing firms in the enterprise space, in particular, are now looking for a full suite of technology in order to compete and there are advantages in getting this core from one vendor with a full ecosystem of supported partners.”

Avionté said in its announcement that it will work closely with each AkkenCloud customer to set up a timeline for transitioning to the Avionté platform. AkkenCloud employees are joining the Avionté team.

“As I considered the best partner for AkkenCloud, Avionté was the right choice for customers and employees alike,” Giridhar Akkineni, founder and CEO of AkkenCloud, said in a press release. “Given the investment required to succeed in staffing software today, we saw that AkkenCloud could no longer compete as an independent company. With Avionté, AkkenCloud customers will have access to the most innovative solutions on the market and the resources to help them grow, scale and succeed now and in the future.”

Akkineni will take an active role in working to ensure successful transitions of the AkkenCloud customers to Avionté. Discussions over the transition will take place over the next weeks and months.

“Our goal is to make sure that we don’t rock the boat for Akken customers and we actually work with them to drive that transition,” Avionté’s Mehrotra said in an interview with SIA. “We’re not going to drive any changes on day one.”

Mehrotra also said he sees further consolidation in the staffing software space ahead.

“I think the industry is at a pivot point because of the changing needs of employers and talent,” he said, adding staffing software will require investment in mobile, security and AI, which Avionté has made over the past four years.

Moving further forward, the biggest things in the future include helping agencies better support employers, Mehrotra said. “Our vision is frictionless employment.”

For more information the front and back office software market, see the Global Staffing Front Office Software Landscape Update 2023 report and the Global Staffing Back Office Software Landscape report from SIA.