posted on 1/12/2012 12:43:27 PM
Buyers of human resources software and talent management tools might be hearing more from iCIMS, an HR SaaS provider, after the company secured $35 million in private equity funds.
Buyers of human resources management software should expect to hear more from iCIMS, now that the provider of HR software has received a $35 million investment that will bolster its marketing and product development efforts and position it for acquisitions.
The maker of SaaS-based HR and talent management tools received the infusion from Susquehanna Growth Equity, a private equity firm whose investment portfolio tilts heavily toward technology companies. iCIMS announced the minority investment on Jan. 11, saying in a statement that it was time for the company to take on institutional support to continue its growth, which iCIMS said has averaged double digits year over year since 2003. Until now, the company has been self-funded and profitable, it said.
“We could have sustained our current rate of growth without an outside investment,” stated Colin Day, iCIMS CEO, “but the timing was ideal to take iCIMS to the next level. This minority growth equity investment from SGE will help us dramatically accelerate our aggressive expansion plans.”
With the $35 million infusion, Susquehanna has appointed three of its representatives to iCIMS’ board.
iCIMS’ Talent Platform software suite includes a database for managing the documentation associated with job candidates and employees; access permissions that can be tailored to hiring managers within the company and external recruiters; online portals that facilitate HR documentation for internal and external candidates, onboarding, and employee self service; job-posting capabilities; and a library for managing HR forms.
The company did not reveal this week where it might look for acquisitions. The HR software and talent management market has been a hotbed of M&A activity lately, as ERP providers and HRMS specialists seek to burnish their credentials among human resources software buyers. SAP, for example, announced in December that it would spend $3.4 billion on HR and talent management software provider SuccessFactors. HR bellwether ADP bought The RightThing and Asparity Decision Solutions in the second half of 2011. And SumTotal acquired CyberShift and Accero to improve its position in the HRMS market.
iCIMS maintains deep roots in various service industries, but also sells its software to manufacturers. In the electronics manufacturing market, it lists Canon, LG, Tyco Electronics, and Brother as customers. Pharmaceutical manufacturers also help fill out its client roster, including Metagenics, Cephalon, and Valeant.