Israeli HR Tech Firm Pilat Group Plans Canadian IPO

Israeli human resources firm Pilat Group is preparing to list on the TSX Venture Exchange in Canada through a reverse takeover (RTO) expected in the first half of 2027. The company aims to raise approximately C$6 million, valuing the firm at about C$42 million before capital, with a post-transaction valuation projected at C$52 million. Exiteam Capital Partners, an Israeli investment bank specializing in guiding Israeli tech companies to the Canadian market, is advising on the transaction.

Pilat Group differentiates itself from many early-stage tech companies by leveraging a long-standing, profitable business alongside rapidly growing technological operations. In 2025, its established business generated C$6.3 million in revenue with C$1.25 million in EBITDA, a 20% margin. Concurrently, its technology division, developed with iVerse, saw 2025 revenues of C$360,000, a 390% increase from the previous year, with user and candidate numbers growing more than fivefold.

The core of Pilat's technological advancement is EVA, an AI-based system designed for candidate assessment and diagnosis. Unlike systems that merely provide scores, EVA offers reasoned diagnostic opinions in professional language, akin to a human occupational psychologist. A validation study showed a high correlation of 0.89 between EVA's assessments and those of senior occupational psychologists. The technology draws on 52 years of Pilat's experience, including a database of over two million candidate assessments and decades of validated diagnostic methodologies.

EVA is already in use by major Israeli organizations, including Mizrahi Bank, the Israel Electric Corporation, Israel Post, and the IDF. A case study involving 914 candidates over five months demonstrated a strong link between EVA's suitability scores and actual hiring decisions, with 89% of hired candidates scoring 3.7 or higher and none scoring below 3.2.

Pilat's strategic move to list in Canada is part of a broader plan to expand its technology operations internationally, particularly in North America. The company intends to broaden EVA's application beyond recruitment to include employee evaluation, leadership potential identification, adaptation to changing roles, and readiness for AI-driven work environments. This strategy aims to position Pilat AI as a Human Capital Intelligence company, supporting organizational decisions throughout the employee lifecycle.