AI operating system creator Veritone will acquire recruiting technology provider PandoLogic for $150 million in cash and stock.
The deal is worth about three times PandoLogic’s expected 2021 GAAP revenues, according to the companies. They expect the acquisition to be “immediately accretive,” with PandoLogic generating more than $50 million in SaaS and related GAAP revenues and over $25 million of EBITDA on a pro forma 2021 basis.Ai firm @Veritoneinc will acquire recruiting tech provider @PandoLogic for $150 million in cash and stock. #HR #HRTech #AI Click To Tweet
PandoLogic uses AI to improve both time and efficiency involved in hiring at scale for mass market and hard-to-source candidates. The platform is fully autonomous, and leverages predictive algorithms and machine learning as well as AI. The company’s software also offers recruitment marketing and conversational AI technology to source candidates across multiple channels.
The 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,” said Veritone Chairman and CEO Chad Steelberg.
“We believe the added financial scale and leverage, and market expansion into talent acquisition will enable us to accelerate further adoption and utilization of our AI.”
PandoLogic CEO Terrance Baker said the companies “will be able to utilize our cognitive engines to help customers create even deeper insight and efficiencies in their hiring practices and beyond.”
Acquisitions for Experience, Efficiency
In May, PandoLogic acquired Wade & Wendy, a provider of conversational recruiting technology. The company said the acquisition positioned it as the only programmatic advertising provider that can define quality applicants without the bias that comes with human involvement.
Adding Wade & Wendy’s conversational AI to pandoIQ will deliver a more personalized application and candidate experience, PandoLogic said. Wade & Wendy automates the scheduling of candidate interviews, and also addresses time-consuming tasks such as sourcing and screening. Around that time CEO Terry Baker told RecruitingDaily’s William Tincup that the deal “represents the evolution of PandoLogic from product to platform.”
More recently, Veritone announced enhancements to its aiWARE operating system. aiWARE 3.0 delivers simplified installation and administration, reducing DevOps requirements. The enhancements also gain a 20% reduction in infrastructure and cost requirements, Veritone said. Other enhancements include reduced job input/output latency and multi-threaded processing control for multiple tasks within a job.