December 6, 2011 – Human resources cloud provider SuccessFactors stated it will pay $110 million in cash for on-demand job recruitment marketing platform provider Jobs2web, only days after SAP announced its own multi-billion-dollar bid for SuccessFactors.
Jobs2web pulls recruiting programs across social and mobile channels, and filter the resulting candidate analytics through its cloud Recruiting Execution Platform. In a news release, SuccessFactors touted the capability of more rounded analytics for recruits from Jobs2web’s offerings, and integration of similar SaaS offerings that would lead to faster software updates.
The deal is subject to closing conditions and expected to close at the end of the year.
On Saturday, SAP announced a proposal of $3.4 billion for SuccessFactors, the biggest deal to date in the on-demand space. Officials from SuccessFactors did not respond to email questions on the timing of the Jobs2web deal.
Mark A. Smith, CEO and chief research officer at Ventana, wrote in his blog that SAP will get a good presence in workforce analytics and the cloud from the SuccessFactors deal. However, Smith he said it remains to be seen how SAP deals with cloud to on-premise data integration and MDM from the proposed SuccessFactors acquisition. As for the Jobs2web deal, Smith said the timing provides SAP with fuller returns in its big splash in the workforce cloud space with the proposed SuccessFactors buy, which has already boosted SAP stock shares.
“SuccessFactors had [the Jobs2web] deal in the works, and at this point, they could acquire other items that SAP needs in this portfolio,” Smith says.