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Randstad Holding buys e-recruiting software company Monster Worldwide

Randstad Holding bought Monster Worldwide to complement its staffing services, while Workday purchased Platfora to expand its capabilities for big data analytics.

A giant HR services provider this week purchased online recruitment trailblazer Monster Worldwide.

Randstad Holding, based in Diemen, the Netherlands, agreed to pay $3.40 per share in cash, or $429 million for the e-recruiting software company, a 23% premium to the stock price.

The Monster.com jobs board was among the first e-recruiting software businesses when it started in 1994, but the company's stock plunged over the past decade amid growing competition and low barriers to entry. Monster's stock was at $57 in April of 2006.

Holger Mueller, principal analyst and vice president at Constellation Research, compared Monster's decline to another internet pioneer, Yahoo.

"There is no value on becoming a 'destination' for job posts -- that was 15 years ago," Mueller said. "This is like the Yahoo struggle as a portal."

Mueller said the worth of Monster fell because of powerful e-recruiting software that can find talented prospects on LinkedIn and Facebook and recommend them to hiring managers.

Monster faces numerous rivals

Numerous job boards, including Simply Hired, CareerBuilder, Indeed.com, Snagajob and Beyond.com, all supplied additional competition for Monster.

Monster, based in Weston, Mass., will continue to operate as a separate and independent entity under the Monster name.

Randstad offers temporary and permanent placement of workers and bills itself as one of the largest staffing companies in the U.S. with offices in 39 states. Randstad, which has 29,750 corporate employees, said the acquisition will allow it to expand its HR services.

"With its industry-leading technology platform and easy-to-use digital, social and mobile solutions, Monster is a natural complement to Randstad," Jacques van den Broek, CEO of Randstad, said in a statement.

Monster acquired its own e-recruiting software companies

Monster has itself purchased several e-recruiting software companies, such as TalentBin, a search engine for talent profiles on social media, and Jobr, a mobile recruitment application.

Monster has also branched into selling e-recruiting software to local, state and federal governments in the U.S. and United Kingdom.

In a statement, Tim Yates, CEO of Monster, said the sale to Randstad will better position the company to fulfill its core mission and employees will benefit from joining a larger, more diversified firm.

"Joining Randstad provides a unique opportunity to accelerate our ability to connect more people to more jobs," Yates said.

Workday improves big data analysis with purchase of Platfora

Workday may have boosted its capabilities for using data in cloud-based HR and financial management when it agreed to acquire Platfora, a platform for supporting analytics.

Workday will provide more details during its annual user conference scheduled for Sept. 26-29 in Chicago.

According to an analysis by Blue Hill Research, Workday is expected to integrate Platfora into its existing financial and HR analytics offerings.

"Workday has the opportunity to take an important step forward in unlocking the value of big data and bringing that value directly to line-of-business application managers throughout the business world," said the analysis by Hyoun Park, chief research officer, and Toph Whitmore, principal analyst, both at Blue Hill Research.

Platfora, based in San Mateo, Calif., serves as a "one-stop shop" for conducting and visualizing analytics from Hadoop, a free programming system for vast amounts of data.

"As Hadoop has become a key technology for collecting and storing unstructured and semi-structured data, enterprises have started tackling the challenge of translating all of that data into business relevance and practical guidance," Park and Whitmore wrote. "One of the key value propositions for Workday is that this acquisition brought in the capability to quickly translate unstructured data into visualizations that can be used by line-of-business managers to make real decisions."

Platfora could upgrade new Workday budgeting application

The purchase could also provide more traction for Workday's new application for budgeting, planning and forecasting, expected to be for sale later this year and to compete with software from cloud-based vendors such as Anaplan, Adaptive Insights, Host Analytics, Tagetik and others, the analysts wrote.

The purchase is a big opportunity for the upcoming launch of Workday Planning, since the product would benefit from Workday's existing data and Platfora's ability to handle Hadoop-based and other unstructured data, according to Blue Hill Research

Mike Frandsen, executive vice president of products, support and delivery at Workday, based in Pleasanton, Calif., announced the company's purchase of Platfora in a blog on July 21.

Frandsen said the purchase mirrors the Workday strategy of acquiring companies that have technologies it can build as part of the fabric of Workday. "We never bolt on solutions because we believe our customers need applications built on one technology foundation, resulting in just a single version of Workday," he wrote.

Next Steps

Workday to sell planning application

Monster Worldwide e-recruiting software operates on Avature

Monster moves to increase hiring of minorities in technology

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