Japanese company Recruit Holdings has purchased Glassdoor in a $1.1 billion, cash only deal. Glassdoor has a solid profile, and started off strongly when the business received several high profile investments early on. However, recent news out of the organisation has been less than exciting, and the pricetag of $1.1 billion, just $1 million more than the valuation from a couple of years ago, suggests that growth prospects have been uninspiring.
Glassdoor most famously enables employees to review their current and previous employers and offers potential employees the chance to see what they are getting themselves and for. The business makes its money from recruitment services, and claims to work with almost half of all Fortune 500 businesses in the United States.
Recruit Holdings, however, is the most interesting part of the story. The business, which provides both traditional recruitment services and complementary websites in the industry, has maintained a consistent stream of acquisitions.
In Australia, Recruit Holdings now owns PeopleBank and Chandler Macleod and is reportedly on the lookout for other opportunities. This is important because many of their high-profile acquisitions took place during periods of slowing confidence and revenues in the industry, and were often completed with cash. This shows great confidence in the sector, and the ongoing need for traditional and non-traditional recruitment services globally.
Glassdoor will reportedly maintain its own brand – something that Recruit likes to do with businesses they own including North American company Indeed – and will still be an autonomous business within the Recruit family.
This represents a continued period of consolidation throughout the recruitment industry and the creation of several large entities that now have a significant controlling stake in the global recruitment industry. It is highly likely that major players will continue to swallow up smaller agencies, and perhaps enticingly for online service providers, seek to create a local and global infrastructure of complimentary web services.
Meanwhile, LinkedIn, Seek and other online service providers are still trying to find the magic formula for recruitment without recruiters. Whether or not this can ever be achieved will remain to be seen.