Even while the big fish is swallowing it, the medium fish is still gobbling up an even smaller fish.
Just four days after the news broke that German enterprise software giant SAP is buying SuccessFactors, SuccessFactors has a little acquisition of its own to announce: It’s buying Jobs2Web for $110 million in cash.
Jobs2Web is a site that helps companies manage their online recruiting and hiring processes. It was founded in 2003 and is based in Minnetonka, Minnesota. The company states that it currently service 150 clients.
Undoubtedly the Jobs2Web purchase was underway well before the acquisition of SuccessFactors became public. Still, it’s a bit dizzying to follow the sequence of acquisitions in the enterprise cloud services space these days.
SuccessFactors, based in San Mateo, Calif., is one of the biggest success stories to come out of the market for internet-based business services. Founded in 2001 by Lars Dalgaard, SuccessFactors went public in 2007 and has made a string of acquisitions of its own over the years, including Jambok, a company that provided video education for employees; YouCalc, a business analytics software firm; and CubeTree, a social network for businesses (sort of like a Facebook for businesses).
Although it lost money in its early, pre-IPO days, the company stated that it posted 77 percent revenue growth year-over-year in the third quarter 2011 and 59 percent revenue growth year-over-year in the first nine months of 2011.
The transaction is scheduled to close by the end of this year and won’t materially affect SuccessFactors’ financials, the company said. Compared to SAP’s $3.4 billion buyout of SuccessFactors, it’s just a splash of water in a big barrel.