XING AG, operator of the leading online business network in German-speaking countries, has acquired Prescreen, provider of the Prescreen candidate management system. The basic purchase price is €17 million and will rise by between €5 million and €10 million from earn-out payments in the future.
Prescreen is headquartered in Vienna and was founded in 2012. The acquisition allows XING to tap into the growing market for candidate and talent management systems.
Modern, cloud-based Applicant tracking systems (ATS) offering intuitive user interfaces are already well established in the US, and demand for them is also growing in German-speaking countries. This is because an ATS provides recruiters with a cost-effective software solution enabling them to easily and effectively manage the entire hiring process, ranging from posting a vacancy all the way through to a candidate signing an employment contract. The Prescreen software gives users the option to post job ads on their company’s careers page or on job boards and social networks, document applications and sort them according to various criteria, create a talent pool to fill future vacancies, and even carry out assessments to determine whether candidates are suitable for a vacancy.
Prescreen is one of Europe’s fastest growing ATS providers with around 350 corporate clients, including numerous small and medium-sized businesses and renowned companies such as Beiersdorf, Ströer and Unicredit Bank Austria. Prescreen currently enjoys double-digit new-customer growth every month. The young company counts 27 employees, all of whom will remain with the company following the acquisition. This also applies to CEO Constantin Wintoniak and the other six founders, all of whom will continue driving the product’s future development. One particular focus for the future will be to link Prescreen with XING’s current e-recruiting portfolio and provide a seamless end-to-end service ranging from candidate searches through to hiring a candidate.
XING CEO Thomas Vollmoeller stated: “XING is already a leading provider when it comes to modern e-recruiting. Our acquisition of Prescreen will enable us to further consolidate this position.”