M&A Activity in Talent Management
The talent management market is hot. With a heated market comes constant speculation on who’s buying who. As one executive recently stated, "…there’s lot of petting going on but not a whole lot of sex!" In an effort to create some mild controversy, I am throwing out some thoughts on the vendors active in the M&A discussion:
Unicru - It seems like a question of not "if" but "when" and "to who". Though it probably won’t happen, I think Unicru and Workbrain would be a good match.
SuccessFactors - Continues to be on the radar screen of almost every vendor. Their continued market success though has created a price tag that is most likely too high for any current vendor to consume. Would be surprised if they added recruitment functionality via acquisition this year. VirtualEdge?
Vurv (formerly Recruitmax) - Probably the most savvy when it comes to understanding the M&A market. I’m expecting an S-1 filing before any acquisition news.
Workstream - Has announced seeking "strategic alternatives". Lots of speculation on the investor message board about a Kenexa acquisition. I’m not buying anything on the boards as those speculators don’t truly understand the market. I don’t foresee any significant announcement soon.
Taleo - Their patience is admirable. As stated in an earlier post, the market has yet to significantly adopt the talent management suite approach. That said, stand-alone performance management is growth at significant rates and an acquisition of available solutions are become harder to come by. Nonetheless, the market is expecting them to pull the trigger on an acquisition soon. SuccessFactors or Plateau would be a tremendous long-term fit…but of course at a significant near-term cost.
ADP - Wants to play in talent management. Active in the discussions and even got close to pulling the trigger on one deal. Their conservative nature will ensure the deal passes muster on all fronts.
Saba - Based in Redwood Shores…could they be moving across the street?
SumTotal - They have performance management via SuccessFactors. Is this the long-term solution?
Kronos - Seems to be kicking the tires…even putting formal offers on the table. Next to ADP, Kronos has significant available capital and is ready to spend it.
May 18th, 2006
6 Comments Add your own
1. Double Dubs | May 18th, 2006 at 2:57 pm
Taleo: I’m not sure if they are patient or late. Either way, I think they’ll be getting into the “suite” market in the next year or so. Just based on their market presence, they’ll have an impact.
ADP: Have been in talks several times in both the talent acquisition and talent management arenas. To my knowledge, haven’t been able to pull off an aquisition yet - which is surprising.
Sum Total and SuccessFactors: Not a single TMS has good LMS - same thing vice versa. This partnership may be the smartest thing out there except that it lacks talent acquisition.
Authoria: I personally like them, but then again, I like alot of vendors. Great UI, great functionality, and they have an excellent brand. Do you see anything for them on the horizon?
2. Jason Haley&hellip | May 18th, 2006 at 4:40 pm
Interesting Finds: May 18, 2006 PM edition
3. Jim | May 20th, 2006 at 10:39 am
I’d add JobFlash to your list. http://www.jobflash.com. Would compliment any ATM system, by creating an effective channel for the hourly workers. They have many devoted clients in hospitality, restaurants, and enterprise services.
4. Dave Lefkow | May 23rd, 2006 at 11:21 am
In my discussions with some of the larger vendors they’ve been turned off by large pricetags on org’s that have yet to turn a profit.
It would be wise for one of them to “buy early,” i.e. find a player like Trovix, HRMDirect, Hirebridge, etc. that is still in the semi-early stages, buy on the (relatively) cheap - just like FirstAdvantage did with Recruiternet - or extend the mid-market product to the enterprise market (which can be done).
Building in-house is insanity.
5. VC Ratings&hellip | May 24th, 2006 at 11:53 am
VC Rating: SuccessFactors
Company: SuccessFactors Description: On-demand HR software Competitors: Halogen Software, Authoria Location: San Mateo Amount Raised: $25 million Round: Third Date Announced: 5/23/06 VC Firms: Granite Global Ventures, Greylock Partners, Emergence Capi…
6. sarah | August 3rd, 2006 at 4:56 pm
You were on the right track… Unicru just got acquired by Kronos.
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