Local Software Firm Jobs2Web to be Sold for $110M
Minnetonka-based software firm Jobs2Web, Inc., agreed to be sold to San Mateo, California-based SuccessFactors, Inc., for $110 million.
SuccessFactors said Tuesday that it will pay in cash. The deal is expected to close by the end of the year.
Founded in 2003, Jobs2Web markets a recruitment platform that uses social network sites such as Facebook, Twitter, and LinkedIn, and search engines such as Google, to help companies promote job openings.
Earlier this year, Jobs2Web appeared on Inc. magazine's list of the 500 fastest-growing private companies for the third consecutive year. The company's 2010 revenues totaled $9.9 million, according to Inc.
“The reason we've grown so fast is that companies are trying to fill jobs while also cutting costs,” Jobs2Web co-founder Doug Berg told the Star Tribune. “We've provided them with a neat way to use new Internet direct-marketing techniques for recruiting, in some cases saving the corporation more than 50 percent of their recruiting cost.”
SuccessFactors, which is a provider of cloud-based human resources software, said that Jobs2Web's platform will complement its own recruitment applications. The company announced plans to acquire Jobs2Web less than a week after it said that it will be bought by Walldorf, Germany-based software giant SAP in a deal worth $3.4 billion. That acquisition is expected to close in the first quarter of 2012.
Berg told the Star Tribune that the Jobs2Web operation will remain in Minnetonka and that all of its employees will transfer to SuccessFactors.
Jobs2Web has about 150 customers, including 3M, Microsoft, and Merck & Company.