Popular applicant tracking system iCIMS added a new investor this week. Vista Equity Partners is giving an undisclosed amount of money to the company for an undisclosed piece of the company. It joins Susquehanna Growth Equity as the second firm. SGE invested in 2012 and again in 2015 to the tune of roundly $92 million, according to Crunchbase. SGE is also an investor in PerkSpot, which recently announced a round of investment.
“The transaction is an exciting one for iCIMS as it serves as external validation of our vision, track record, and belief that we can win this market,” wrote Susan Vitale, CMO at iCIMS in a statement. “Vista is committed to our vision and has expressed interest in accelerating our growth through new products, add-on acquisitions, and potentially a stronger push for international expansion. We’re very proud to partner with Vista in this next phase of growth.”
The investment comes at a time when things at iCIMS are looking pretty good. You might remember the acquisition of TextRecruit earlier this year, as well as a strategic partnerships with ADP and Ultimate Software. Key leadership hires within the C-suite are noteworthy too.
“We’re very proud to partner with Vista, who has a phenomenal reputation and strong technology expertise, to accelerate our growth,” said Colin Day, iCIMS chairman and CEO. “Given the size of the industry, iCIMS’ track record, and our team of dedicated, talented employees, we continue to see an incredible opportunity for iCIMS to win this market. Vista’s support gives us additional confidence in making that a reality.”
Day will continue to serve as the company’s CEO.
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Though the terms of the deal weren’t disclosed, which is a bit odd for a deal like this, it’s unlikely Vista just threw some spare change at iCIMS. I’d be surprised if the number isn’t in the tens of millions. The extra investor is also a sign that an IPO event could be in iCIMS future. A buyout is also likely, but I think it’s less likely considering the nature of the ATS business and the amount of players that exist.
“Increasingly what separates top companies from their competition is their ability to identify, recruit, and hire the best talent,” said Brian Sheth, co-founder and president of Vista Equity Partners. “The competition for talent is only going to increase in the future. As the market leader in talent acquisition solutions, iCIMS is poised for growth by providing companies the competitive edge they need to bring on top talent. We are thrilled to invest in iCIMS to help capitalize on the opportunities in the market and accelerate the company’s growth.”
The timing to raise money is right. With players like LinkedIn, Google, and Indeed getting more active in iCIMS’ space, it’s going to need ammunition to take on such heavy-hitters. The activity among such big companies in the HR tech arena should also generate interest with retail investors if iCIMS decides to enter the public market.