Randstad to acquire outplacement innovator RiseSmart
With this acquisition, and the previous investments of Randstad Innovation Fund, Randstad seizes the opportunity to invest in emerging technologies to better compete in the increasingly evolving HR services industry.
RiseSmart provides transitioning solutions to companies whose employees are impacted by restructuring, downsizing, mergers and similar events. Powered by a virtual, scalable model, RiseSmart is considered disruptive to traditional competitors by utilizing a proprietary, smart technology-driven approach that accelerates the time to place transitioning candidates 60 percent faster than the national average.
“The HR technology landscape is rapidly changing, requiring more innovative and advanced solutions,” says Linda Galipeau, CEO of Randstad North America and Executive Board member of Randstad Holding nv. “We are very excited to invest in RiseSmart, which is challenging the traditional model of offerings in the marketplace today and transforming how employers interact with talent. RiseSmart is a natural complement to our total suite of services in the sourcing, onboarding and management of talent. By adding RiseSmart to our mix, we are looking forward to further strengthening our position as a true HR partner for all phases of the talent lifecycle, everywhere we operate."
"We are delighted to combine RiseSmart’s entrepreneurial spirit, outplacement expertise, technology portfolio and key talent with Randstad to create a leading global outplacement business,” said Sanjay Sathé, RiseSmart founder and CEO. “As a standalone company we disrupted the outplacement industry with our technology-led offering and enjoyed enormous growth. Now, with Randstad’s extensive customer base, global reach and comprehensive services portfolio, we can transform how employers transition talent, protect employer brands and reduce risk — on a massive scale."
The current career transition market worldwide is estimated at roughly USD 5 billion and is moving towards a more virtual, data-driven model. The addition of RiseSmart, its client network and unmatched expertise elevates Randstad’s position in the market and creates tremendous value for our clients regardless of industry or geography.
An example of RiseSmart’s capabilities is its recent launch of RiseSmart Spotlight, a cloud-based outplacement solution that combines one-on-one coaching from trained professionals with advanced technology to help transitioning employees pinpoint relevant job openings, network with professional contacts, develop and promote their personal brands and more – all in an integrated platform and supporting mobile app that fully leverage the power of social networks.
Randstad has paid USD 100 million for 100% of the shares and the transaction was closed on September 24, 2015. Led by President and Chief Executive Officer Sanjay Sathé, RiseSmart will operate independently, whilst complementing the Randstad service offering.