Mergers and acquisitions are all the rage in the HR tech world this week.
Hot on the heels of Zoom buying Five9 for $14.7 billion and Salesforce completing its $27.7 billion acquisition of Slack, AI operating system Veritone has announced it has purchased autonomous recruiting platform PandoLogic for $150 million.
This comes just two months after PandoLogic bought Wade & Wendy to help to further automate recruitment offerings, as well as to help remove bias from the hiring process.
The $150 million purchase is roughly three times PandoLogic’s expected 2021 GAAP revenue and consists of $50 million upfront, $35 million in Veritone stock and $65 million to be paid based on financial performance in the 2021 and 2022 financial years.
As a result of the deal, PandoLogic will become a wholly owned subsidiary of Veritone.
PandoLogic has developed an AI-enabled recruiting platform called pandoIQ that aims to accelerate the time it takes it hire, as well as improve the efficiency of recruitment at scale. Since the platform is fully automated and the AI learns on the job, pandoIQ aims to continually optimize user recruitment success.
Veritone CEO and chairman Chad Steelberg commented: “This transformative acquisition builds on the strength of our organic growth, expands our addressable market with a new diversified revenue stream, and unlocks new growth and development opportunities as we integrate the platforms.
“Both companies have been leaders in their respective markets. Together, we will create efficiencies across the broader corporate landscape.
“We are excited about the prospects, and welcome PandoLogic’s talented team to Veritone.”
PandoLogic CEO Terrance Baker added: “With our shared vision for AI and strong cultural alignment, we are looking forward to becoming a part of the Veritone family.
“In combination with Veritone, we both will be able to utilize our cognitive engines to help customers create even deeper insight and efficiencies in their hiring practices and beyond.”