Bullhorn acquires Erecruit to support Bullhorn One growth
On 1st October, Bullhorn announced that it had acquired Erecruit. Terms of the deal were not disclosed. Following the news, we spoke to Peter Linas (pictured), EVP of corporate development & international at Bullhorn, to find out what the deal means for customers and their plans for the two companies going forwards.
Why did Bullhorn decide to acquire Erecruit?
“The acquisition of Erecruit is a strategic investment in Bullhorn’s vision to help staffing companies realise the promise of digital transformation in their businesses. Specifically, Bullhorn is excited about three major strengths that the Erecruit team will provide. The first is intellectual property, which includes deep pay and bill, onboarding, and mobile candidate experience capabilities. The second is strong internal talent, comprising employees who have deep knowledge of the staffing industry, pay and bill processes, and large-scale pay and bill deployments. And the third is the Erecruit team’s long-standing relationships with some of the leading staffing firms in the industry and experience in addressing their diverse needs.”
What benefits will the acquisition bring to both Bullhorn and Erecruit customers?
“Bullhorn customers will benefit as Bullhorn leverages Erecruit’s knowledge, capabilities, and intellectual property to help staffing companies accelerate their transition to an integrated and fully digitized system for managing everything from recruitment and sales to operations and finance. For Erecruit customers, Bullhorn brings scale, process efficiency, and increased service levels to the companies that it acquires to the benefit and advantage of these companies’ customers. Additionally, for Erecruit’s customers, becoming part of the Bullhorn family means benefiting from $40 million in annual R&D and technical operations expenditure, a strong delivery engine and experience delivering enterprise projects at scale, and culture of innovation (including investments in cutting-edge artificial intelligence research and technology).”
How will the two teams come together?
“Unlike with some previous acquisitions, Bullhorn is not changing Erecruit’s organizational structure or process. The management team from Erecruit will join Bullhorn in key leadership positions and continue to support Erecruit customers. Both companies have cultures predicated around customer service and centricity, and our cultures are well-aligned for future productivity.”
How good is the fit between the two companies’ customer bases?
“The fit is ideal because we both serve the same industry. The Erecruit team has relationships with enterprise staffing firms as well as numerous SMB staffing relationships around the world. Almost all of the customers of Erecruit and its subsidiary companies are already familiar with Bullhorn as a company.”
What impact will the deal have on your international coverage?
“Both Bullhorn and Erecruit are international companies with offices and personnel around the world, and we're well suited to provide a truly global product, sales, and support experience for customers and prospects.”
What are your plans for Bullhorn (and Erecruit) in the coming years?
“Bullhorn has made a commitment to providing a start-to-finish solution for the staffing industry with the release of Bullhorn One, which includes pay and bill functionality that leverages our time and expense capabilities as well as new payment and billing capabilities under development. Erecruit’s expertise in pay and bill deployments for enterprise staffing companies coupled with their pay and bill intellectual property provide major assets to Bullhorn as we continue to grow Bullhorn One and launch it into the market. Additionally, Erecruit’s people have considerable industry experience, especially in deploying pay and bill solutions, and having them on the Bullhorn team will make us even stronger and even more able to deliver an incredible customer experience. Regarding plans for Erecruit products specifically, Bullhorn will maintain and support Erecruit products moving forward for the indefinite future, and in some cases, will make significant investments to grow several product lines.”
Do you still have an appetite for further deals?
“Our primary motivation is to help our customers navigate the changing world of work and remain competitive and well-prepared for what the future holds in terms of technology proliferation and adoption. This deal is a major accelerant of our strategy to help our customers move to a completely digital model. Insofar as other companies support and contribute to that vision, we will gladly consider further deals.”