Parklane advises Honeypot on its recent sale to XING SE; largest acquisition in XING's history
Parklane Capital is pleased to announce its latest deal in the digital transformation sector. Honeypot, the leading job platform for IT specialists in German-speaking countries, was acquired by XING for up to € 57 million.
Parklane Capital acted as exclusive financial advisor to Honeypot and its shareholders. After the recent investment of Volkswagen AG in digital specialist diconium, the sale of Videobeat Networks to Dentsu Aegis Network and the sale of OC&C Strategy Consultants GmbH (Germany) to EY-Parthenon, we are happy to successfully complete another transaction in the technology and digital transformation space.
XING SE acquires Honeypot, the leading job platform for IT specialists in the D-A-CH region
- Largest acquisition in XING's history with total transaction volume of up to € 57 million
- XING CEO Thomas Vollmoeller: " Excellent addition to our New Work Portfolio "
- The acquisition will further expand XING’s international presence
XING SE, operator of the leading online business network in German-speaking countries, has acquired Honeypot GmbH, an innovative IT job platform based in Berlin, with immediate effect. Honeypot turns the conventional job board principle on its head as companies apply to potential employees, not the other way around. The basic acquisition price is €22 million, with earn-outs of up to €35 million to be paid in addition if ambitious operating targets are reached within the next three years. This represents XING’s largest-ever acquisition and an additional milestone in the journey towards the company’s vision – for a better working life – by serving products that help people find the right job to suit their needs and preferences.
XING’s acquisition of Honeypot enables XING to further reinforce its international presence. Honeypot was launched in 2015 and is currently Europe’s tech-focussed job platform that brings global talent together with companies in German-speaking countries and the Netherlands. The platform currently enjoys a growth rate of around 1,000 new IT specialists every week. About 50 people work at Honeypot, which supports some 100,000 IT specialists and over 1,500 businesses. Honeypot is now planning to rapidly grow its business activities in German-speaking countries while also looking to expand to other international markets in order to realize the founders‘ vision to create the world’s largest work-life community for IT specialists. XING, in turn, is planning to invest significantly in these expansion plans.
Honeypot turns the conventional job board on its head
Digitalisation, a shortage of skilled workers in Germany, and the resulting changes on the labour market are already clearly tangible in the tech industry, and this trend is set to continue in the same vein over the coming years. In 2018 there were 82,000 unfilled IT vacancies in Germany. This is bringing about a shift in power between employers and job applicants, with companies now having to battle for top talent to stay ahead of the competition.
Honeypot brings IT specialists and tech companies together by turning the conventional job board principle on its head, with companies following a specific set of rules to streamline the process of applying to potential employees. This means that companies are required to supply certain details, such as the salary on offer and the programming languages required, when contacting candidates in order to ensure compliance with the quality standards put in place. Before their profile is activated, developers are subject to a brief expertise check and can enter their preferences in terms of programming languages, salary, and location to ensure best-possible matching.
Thomas Vollmoeller, CEO at XING, said: “This acquisition is an excellent addition to our New Work portfolio. Honeypot focuses on candidates by helping them to find a job matching their individual preferences.” The Honeypot acquisition also represents an additional milestone in terms of executing the company’s strategy as XING SE intends to rename itself New Work SE during the second half of 2019 to pave the way for further growth. “With subsidiaries and brands such as kununu and HalloFreelancer, XING is far more than just a single network.” said Thomas Vollmoeller, who added that “New Work is the umbrella spanning all our business activities.”
“XING and Honeypot both have the vision of helping people to further their career. We are building the world’s largest work-life community for tech people – in this context, we want to give candidates the full power to decide on their next career step. We will continue to pursue this vision with XING. Going forward, over 100,000 IT specialists from all over the world who are already registered on Honeypot will be able to connect with diverse employers from across German-speaking countries. We look forward to expanding our presence across Europe and further afield.” said Kaya Taner, CEO at Honeypot.
Alastair Bruce, CSO at XING, said: “XING E-Recruiting has a strong network of around 20,000 corporate clients, while Honeypot has access to IT specialists all over the world who are already in high demand. Together we will help businesses find the right talent and support people in enabling them to do the job they always wanted to do.”