Software firm Jobs2Web, a cloud-based recruiting platform that lures top candidates through social networks such as LinkedIn and Twitter, has been acquired for $110 million in cash.
The Minnetonka, Minn-based company, which appeared on the Inc. 500 for the third year in a row this year, will be acquired by California-based SuccessFactors, a human resources software vendor that is itself being acquired by German company SAP.
Jobs2Web's 2010 revenues totalled $9.9 million. The deal is expected to close before the end of the year.
The Minnesota company's specialty is connecting hiring managers with candidates using application-tracking tools.
"It was easy for SuccessFactors to pull the trigger on acquiring Jobs2web, despite an extremely competitive acquisition fight for them, because they have so many powerful assets," Lars Dalgaard, the founder and CEO of SuccessFactors, said in a statement.
Dalgaard added that Jobs2web is growing fast and "is disrupting the way companies can make social networks their friends in recruiting and not a distraction, helping hiring managers find people in ways they never could before.
Jobs2Web was founded in 2003. Its 150 customers include 3M, Microsoft, and PepsiCo.
The company's co-founders Doug Berg and Peter Brasket are alumni of Techies.com, a Twin Cities-based technology career website Berg founded in 1996. Berg was also the founder and CEO of Quantum Consulting & Placement, a Minneapolis based IT consulting and placement services company.
"The reason we’ve grown so fast is that companies are trying to fill jobs while also cutting costs,” Berg told the Minneapolis 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 beef up its own professional recruiting software, producing a "transformational social recruiting engine." SuccessFactors on Dec. 3 announced it was being 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.