SAP Acquisition Target SuccessFactors Makes Its Own Purchase

SuccessFactors Inc. (SFSF), the software company that SAP AG is buying for $3.4 billion, announced its own deal today: the purchase of closely held Jobs2Web Inc. for $110 million in cash.

Jobs2Web makes Web-delivered software that helps recruiters use Twitter, LinkedIn and other sites to hunt for candidates. SuccessFactors didn’t disclose the Jobs2Web agreement when the SAP deal was announced on Dec. 3 because it wasn’t completed yet, said SuccessFactors Chief Executive Officer Lars Dalgaard.

Jobs2Web, based in Minnetonka, Minnesota, counts Microsoft Corp., PepsiCo Inc. and Merck & Co. among its customers, Dalgaard said. He declined to disclose Jobs2Web’s sales, saying only that it has about 120 employees and is growing faster than SuccessFactors’ own 77 percent third-quarter revenue growth.

“I’m going to do a lot more with this,” he said, referring to Jobs2Web’s technology.

SAP is acquiring San Mateo, California-based SuccessFactors to expand deeper into cloud-computing software, which is delivered as a subscription service online. Dalgaard will join SAP and lead its cloud efforts after the deal closes in the first quarter, possibly in January, he said.

Saswato Das, a SAP spokesman, said SuccessFactors is still a separate company and it has the prerogative to make deals until the SAP acquisition closes.

SuccessFactors shares rose 5 cents to $39.80 today, trading near the $40 acquisition price. The shares had lost 9.4 percent of their value this year before the deal was announced.

To contact the reporters on this story: Aaron Ricadela in San Francisco at aricadela@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.