DENVER, May 31, 2023
/PRNewswire/ -- Veritone, Inc. (NASDAQ: VERI) ("Veritone" or the
"Company"), a leader in enterprise AI software and services, today
announced its agreement to acquire Broadbean, a global leader of
software-as-a-service (SaaS) technology that makes talent
acquisition and engagement easier, faster and more efficient, from
CareerBuilder. Covering more than 180 countries, serving 3,000+
clients and integrated with over 100 Applicant Tracking Systems
(ATS) partners, the strategic acquisition of Broadbean will expand
Veritone's AI-powered human resources solutions offerings and will
build upon Veritone's acquisition of PandoLogic in 2022. Total
consideration paid will be $52.5
million in cash on a cash- and debt-free basis. The
acquisition is expected to be immediately accretive to Veritone's
operations, and on a standalone basis, is expected to generate SaaS
and GAAP revenues of over $35.0
million on an annualized basis while contributing attractive
EBITDA margins.
Veritone's Innovative HR Solutions Enable Increased
Efficiencies within the Hiring Process
Both Broadbean and PandoLogic hold leadership positions in the
rapidly evolving talent acquisition market, which is valued at
$36.1 billion globally as of 2022,
according to Staffing Industry Analysts. By using AI recruiting
tools to engage job seekers, Veritone HR Solutions will accelerate
employers' hiring efficiency with advanced data-driven hiring
decisions and process automation. With more than half of
Broadbean's revenue coming from outside of North America, the combined offerings will
further accelerate Veritone's geographic expansion and address the
challenges presented by today's remote and hybrid hiring
requirements.
The acquisition of Broadbean will add more than 5 billion data
points of global job advertising performance to Veritone's AI
algorithms and analytics, enabling Veritone to further enhance
recruitment insights for customers and scale AI-driven enhancements
across the business.
"This transformative acquisition signifies Veritone's focused
approach to expanding and scaling our AI-powered HR Solutions
portfolio globally," said Ryan
Steelberg, president and chief executive officer of
Veritone. "The acquisition will build on the strength of our
organic growth, will expand our HR Solutions addressable market
opportunity, is expected to be immediately accretive, and will
unlock new sales growth and development opportunities as Veritone
integrates PandoLogic's recruitment technology into Broadbean's
global distribution software and network. The combination of our
companies will extend the reach of leading AI technology and HR
SaaS solutions globally to the world's largest multinational
employers that require more efficient and scalable human resource
and hiring solutions.
"We believe the added financial scale and leverage, and product
expansion into over 100 ATS partners,
will enable us to accelerate further adoption and utilization of
our AI via PandoLogic's programmatic technology," added Steelberg.
"Both companies have been leaders in the HR and talent acquisition
markets, including Broadbean's global footprint with over 3,000
customers. We are excited about the prospects, and welcome
Broadbean's talented team to Veritone."
"With our shared vision for technological HR-enabled solutions
and strong cultural alignment, we are looking forward to becoming a
part of the Veritone family," said Alex Fourlis, President,
Broadbean, who will step into a new senior leadership role with the
combined company after the transaction closes. "We believe that
Veritone's AI capabilities and our combined portfolio will help
unlock value in Broadbean's performance data, client and partner
ecosystem."
Post-closing, the combined businesses of Broadbean and
PandoLogic will be integrated and rebranded as Veritone HR
Solutions. This will enable Veritone to better service new and
existing customers with a broader suite of HR-enabled solutions and
allow for increased efficiencies and a go-to-market team that has
broader geographic presence.
In conjunction with the acquisition, Veritone is announcing
several executive changes within its HR Solutions business.
Terry Baker has stepped down as
President and Chief Executive Officer of Veritone subsidiary,
PandoLogic, and accepted a new role as independent advisor to
Veritone, supporting Veritone's HR Solutions business.
Additionally, Veritone has appointed Matthew O'Connor as Chief Revenue Officer of
Veritone HR Solutions.
UBS Investment Bank is acting as sole financial advisor to
Veritone. Cooley LLP is acting as legal counsel to Veritone. PJT
Partners and LionTree are acting as financial advisors to Career
Builder. Sidley Austin is acting as
legal counsel to Career Builder.
To learn more, visit veritone.com/broadbean-acquisition
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SOURCE Broadbean