K1 Investment Management has made a majority investment in recruitment software firm Jobvite, leading to the acquisition of three companies and the creation of a talent acquisition platform.
The three investments, which total more than $200m, were used to acquire recruitment marketing firm Talemetry, employee referral and internal mobility company RolePoint and text-based conversational recruiting firm Canvas.
The combined company will have the ability to hire teams to source, engage, hire, onboard and retain talent via one end-to-end platform.
The investment will bring Jobvite together with three innovative recruiting companies, resulting in more than 2,000 customers including Schneider Electric, Lenovo, Santander, PayPal and Panasonic. The combined company will be led by Jobvite CEO Dan Finnigan.
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Kyle Lagunas, research manager for talent acquisition and staffing at IDC, declared the three acquisitions and investment as "big news for the talent acquisition industry", noting that Jobvite has "an immense opportunity ahead".
"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," Lagunas remarked.
The combined company will attempt to tap further into the challenging US jobs market, where an unemployment rate of 4% – the lowest rate in 50 years – has led to a more competitive recruitment landscape. Meanwhile, the shift in demand for skilled labor and STEM workers has led many US companies to demand advanced technology to address challenges within the changing hiring landscape.
On the mergers and its relationship with K1, Jobvite's Finnigan stated: "Our focus is to help leading companies win top talent and build the best teams with an award-winning candidate experience.
"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."
Talemetry CEO Jade Bourelle boasted: "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."
K1's majority investment in the company will see existing shareholders, including the companies' founders and New York-based growth equity firm Catalyst Investors retain a minority interest.