February 20, 2019 – Recruiting software firm Jobvite has announced that it will double down on its plans to build a bigger platform for recruitment and applicant tracking. The company says that it has secured investment funding of more than $200 million and that it has acquired three companies focused on different aspects of the recruitment process: Talemetry, RolePoint and Canvas.
The new funding gives K1 Investment Management a majority investment in Jobvite. This set of investments, totaling more than $200 million, brings together Jobvite and three of the recruiting industry’s more innovative companies, resulting in more than 2,000 customers, including Fortune 500 enterprises such as Schneider Electric, Lenovo, Santander, PayPal, Genuine Parts and Panasonic.
“The merger rapidly accelerates the companies’ product development roadmaps and the integration of their customer solutions,” said K1 and Jobvite. “In addition, the combined companies will continue to meet existing client needs, including all system integrations as well as maintaining all operations globally.”
K1 and Jobvite also announced the new acquisitions. Talemetry is an award-winning recruitment marketing company. RolePoint is a leader in employee referral and internal mobility. And Canvas is the industry’s only text-based conversational recruiting company. “For the first time, this combination enables hiring teams to source, engage, hire, onboard and retain top talent with one end-to-end platform – delivering a unified candidate experience,” said K1 and Jobvite.
A New Bar
K1’s investments in Jobvite and the other recruiting companies accelerates Jobvite’s mission to create the industry’s only end-to-end, candidate-centric software platform, said K1. “The company’s combined set of solutions and services will set a new bar for the candidate experience — driving engagement from the very first interaction, to the first day on the job, and to the next promotion,” said the investment firm.
Dan Finnigan, Jobvite CEO, will lead the combined company. “Our focus is to help leading companies win top talent and build the best teams with an award-winning candidate experience,” said Mr. Finnigan. “K1 provides unparalleled SaaS expertise and vast resources that, in combination with these four trailblazing companies, will offer our customers the most comprehensive solutions, knowledge and services available in the market.”
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Today, with more jobs in the U.S. than there are people to fill them — and unemployment at its lowest rate in 50 years — companies are in a war for talent. The strategic value of recruiting is growing rapidly, as business leaders recognize the impact of talent acquisition on the bottom line. With this dramatic shift in the importance of recruiting top talent, particularly skilled labor and STEM workers, companies are demanding increasingly advanced technology to address every stage in today’s complex hiring landscape.
Kyle Lagunas, IDC research manager for talent acquisition and staffing, described the acquisitions as big news for the talent acquisition industry. “With the backing of a major growth equity partner like K1 Investment Management, Jobvite has an immense opportunity ahead – as evidenced by the immediate acquisition of three differentiated recruiting solutions,” he said. “This newly extended suite sets them apart among other recruiting platforms with an enterprise-grade solution that positions them well in the broader talent acquisition category.”
“Whether a client is augmenting its existing HCM or ATS system with Talemetry, Rolepoint or Canvas or selecting an end-to-end platform with Jobvite, the new combined company has a solution to meet its unique needs,” said Jade Bourelle, Talemetry CEO.
K1 made a majority investment in the company while existing shareholders, including the companies’ founders and Catalyst Investors, a New York-based growth equity firm, will retain a minority interest.
“We are excited to be investing in such an innovative set of technologies,” said Ron Cano, managing partner at K1 Investment Management. “The talent acquisition industry is critical to our economy and ripe for disruption with outdated software still prevalent. K1’s investment will create the only true end-to-end talent acquisition platform and will provide our customers with accelerated growth in innovation of product features and services.”
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