November 16, 2015 – Talentsoft, a global, privately held leader for cloud-based talent management solutions, has completed a funding round of $27 million. The round was led exclusively by Goldman Sachs’ merchant banking division.
The company’s software application suite provides an end-to-end talent management solution, ranging from recruiting to learning, and from compensation to performance management. Talentsoft targets both mid-market and large-enterprise customers and has deployed its solution in global companies with over 200,000 employees. Its clients include Air France, Arkadin, Bata, Bolloré, Bouygues, Bull, Clarins, Dassault, DB Schenker, Delta Lloyd, EasyCash, Elior, Euromaster, Galeries Lafayette, Geneva Airport, Ingenico, Mazars, McDonald’s, Pernod Ricard, Randstad, Safran, Swarovski, Toys ’R’ Us, Vinci, Ziggo and Zodiac Aerospace.
This new funding round will play an important role in Talentsoft’s strategic international growth. In 2016, the company says it will expand its presence in the U.S. and Singapore, and offer local customer support across Europe, North America and Asia. This investment will further Talentsoft’s objective to triple its revenue to over $100 million by the end of 2018.
The financing will also allow Talentsoft to continue to strengthen its product innovation team, which currently employs more than 100 developers, and make it the largest European research and development center dedicated to a cloud-based human resources solution. Talentsoft will focus on driving global adoption of its leading social sourcing application “Hello Talent,” rolling out applications to help employees take charge of their career and training opportunities, and strengthening its unique human resources analytics solution.
Talentsoft plans to recruit 120 new employees in 2016 and to increase its employee base to more than 500 by the end of 2018.
“This new funding round will accelerate the international expansion of Talentsoft and will strengthen our position as the European leader of cloud-based talent management software,” said Jean-Stéphane Arcis, Talentsoft CEO. “We are extremely proud to welcome Goldman Sachs as our newest investor and we highly appreciate their confidence in our vision, mission and products. Besides their financial expertise, we will also benefit from Goldman Sachs’ ability in building global strategic partnerships and their deep knowledge of key geographies and end markets.”
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David Reis, executive director and head of technology at Goldman Sachs merchant banking division in Europe, said: “Talentsoft has consistently outgrown the market thanks to constant innovation and outstanding execution capabilities. We are truly excited to partner with a world class management team to support the next step of the company’s domestic and international development.”
Goldman Sachs is the only investor to participate in this funding round. It now joins Seventure Partners, Bpifrance (via its Ambition Numérique fund), Alto Invest, and Highland Capital Partners Europe as fellow investors in Talentsoft.
“IDC forecasts high future growth in the market for talent management applications as organizations in Europe and elsewhere are adopting digital business models and new work practices,” said Bo Lykkegaard, associated vice president at IDC. “Furthermore, we see customer demand changing from niche talent applications to broader, SaaS-based talent and human capital management suites.”
Over the past few years, the largest talent management software providers have been getting acquired at a steady pace. In 2012, Oracle acquired Taleo Corporation for $1.9 billion. Together, Oracle and Taleo have been creating a comprehensive cloud offering for organizations to manage their human resource operations and employee careers.
SuccessFactors has also made several high-profile acquisitions throughout the industry before it was eventually acquired by SAP. It purchased Jobs2web, a recruiting marketing platform for $110 million in cash, and Plateau, a learning management system, for $290 million. Following these acquisitions, SuccessFactors was acquired by SAP for $3.4 billion.
Just last week, SAP announced the initial integration of the vendor management system Fieldglass and SuccessFactors. Fieldglass, acquired by SAP in 2014 for more than $1 billion, enables the management of contingent workforce and staffing suppliers. With the integration, organizations will “now be able to upload data from Fieldglass into contingent profiles in SAP SuccessFactors Employee Central, making them visible to everyone in the organization through people searches and organizational charts,” said a company insider. “The integration between SAP’s HCM and services procurement solutions allows companies to break down silos and gain meaningful insights on all of their workers to achieve business goals.”
Contributed by Dale M. Zupsansky, Managing Editor, Hunt Scanlon Media