Procurement software firm buys VMS provider DCR Workforce

Procurement software maker Coupa Software (NASD: COUP) announced Monday it acquired DCR Workforce, a provider of a vendor management system for managing contingent workforces. Coupa reported it paid $25 million upfront for the company with an earnout potential, according to a conference call with analysts.

“This acquisition could end up being a watershed moment for the industry,” said Bryan Peña, senior VP, contingent workforce strategies at Staffing Industry Analysts.

“It not only demonstrates the continued appetite for consolidated technological solutions that address an ever-increasing piece of the enterprise third-party spend,” Peña said, “but could, more importantly, signal a potential shift away from traditional MSP partners as companies like Coupa leverage management consultancies and higher-level relationships within the organization to deploy the technology.”

DCR Workforce’s VMS operates under the Smart Track brand; the Boca Raton, Fla.-based company was founded in 1995.

“Effective visibility and control of contingent labor spend continues to be a growing priority for best-in-class organizations,” Coupa CEO Rob Bernshteyn said in a statement. “I am excited to welcome co-founders Ammu Warrier and Naveen Dua and their team to Coupa and look forward to delivering on our shared vision.”

Coupa announced DCR Workforce will build upon its “Coupa Services Maestro” offering that provides statement-of-work management, and the company will integrate DCR Workforce’s functionality into its platform. The new offering will be called “Coupa Contingent Workforce.”

Coupa CFO Todd Ford said in a conference call that DCR Workforce has two key businesses. “One is a VMS, vendor management systems, the piece that we’re most interest in, and then they also have a managed service provider business. So the deal that we did was an asset acquisition so that we picked up the assets related to the vendor management system and the key people there as well.”

Later in the call, Ford said the company will continue to support customers who use both DCR Workforce’s VMS and MSP.

“In today’s gig economy, businesses have greater access to temporary labor and services around the globe to augment their workforce in new and innovative ways. With this expanded labor force comes the need for more sophisticated solutions to manage onboarding, offboarding and services delivery, all while ensuring local labor and compliance requirements are met,” said Warrier, DCR Workforce president, said in a statement. “We are thrilled to join Coupa to deepen the company’s offering in this space so that businesses can spend smarter across every aspect of their business.”

Coupa, based in San Mateo, Calif., also announced earnings on Tuesday for its fiscal second quarter ended July 31. The company reported revenue rose 38.4% to $61.7 million. However, it posted a net loss of $13.9 million.

Private equity buys majority stake in Aequor Healthcare Services

DW Healthcare Partners, a healthcare-focused private equity firm, acquired a majority stake in New Jersey-based Aequor Healthcare Services.

Founded in 1998, Aequor provides clinical staffing of physicians, therapists, nurses, technologists and allied healthcare professionals. It counts almost 300 client companies nationwide, including hospital systems, nursing homes, home-care providers, clinics, school systems, laboratories and pharmaceutical/life sciences organizations.

The transaction closed May 10. Terms were not disclosed, but Aequor founders Manmeet Virdi and Kamal Virdi retained a “significant” equity stake and continue to run the company along with all of the management team.

“We are confident that partnering with DWHP is a strategic fit for Aequor that will better position us to deliver expanded service offerings to our clients and healthcare professionals,” said the Virdis, who also serve as co-CEOs. “This will also provide tremendous growth opportunities for our team members.”

Aequor acquired TheraStaff LLC from Eastridge in 2016.

“Aequor has built a very strong and diversified staffing services platform, and with the additional resources from this partnership, the company is poised to accelerate its growth across all verticals and firmly establish itself amongst the leading national healthcare staffing companies,” DW Healthcare Partners Principal Gabe Becher said.

CareerBuilder names new CEO

CareerBuilder named Irina Novoselsky as president and CEO, effective today. She replaces Matt Ferguson, who assumes the executive chairman role following 14 years as CEO.

Novoselsky joined CareerBuilder in October 2017 as president and COO. She previously was CFO and then president of tech-based services firm Novitex Enterprise Solutions. Prior to Novitex, she was an investment strategist at Dubin & Co., an investment professional at Apollo Global Management in the Private Equity Group and an investment banker at Morgan Stanley in the M&A group.

“Irina is a talented tech executive with the perfect complement of skills to further establish CareerBuilder as the innovative partner of choice in the competitive HR tech space,” current CareerBuilder Chairman David Sambur said. “I also want to thank Matt for his 14 years of service and I look forward to his continued leadership as our new executive chairman.”

Sambur is also senior partner of Apollo Global Management, which last year acquired a majority stake in CareerBuilder.

Online job ads fall by 46,300 in August, led by drop in transportation and material moving ads

US online job ads decreased in August by 46,300 to about 4.6 million, according to The Conference Board’s report on online job ads released today. Most occupations showed losses over the month and most states showed small losses.

The August decrease follows an increase in July but declines in June, May and April.

Transportation and material moving ads had the largest decrease in August, down by 24,700 to 324,100, followed by healthcare practitioners and technical ads, which decreased by 15,400 to 505,700 ads. Business and financial operations ads fell by 9,700 to 291,800 ads.

Three of the largest 10 online occupational categories posted increases in August. Food preparation and serving-related ads logged the largest increase, up by 3,300 to a total of 224,200. Sales and related followed, up by 2,600 ads to 444,800; ads for installation, maintenance and repair jobs edged up by 2,100 to 200,300.

Employers want ‘mix of tech and touch’ from recruiters: Randstad Sourceright

Despite widespread adoption of HR tech, many business leaders still want a human touch for critical moments during the recruitment process, according to Randstad Sourceright’s Q3 2018 Talent Trends report.

The report’s survey included more than 800 global human capital leaders in 17 countries. It found that when it comes to tasks such as searching for talent, half of employers surveyed, 51%, believe initial screening should be mostly or completely automated. Similarly, the same percentage feel that automation is useful for tracking HR data/metrics and for the creation and management of HR analytics.

However, talent leaders still value human interactions because they say a personal touch at certain points in the recruitment process keeps candidates engaged.

The top three functions employers believe benefit from a personal touch include shortlisting candidates by video interviews, 28%; scheduling interviews with candidates, 27%; and managing talent communities and engagement, 26%.

“There has never been a better time for employers to explore the possibilities that technological innovation can bring to their recruitment processes,” said Michel Stokvis, managing director of the Randstad Sourceright’s global Talent Innovation Center. “It is now so much easier to source and screen talent, but at the same time, there’s an added level of complexity. This requires companies to consider the overall hiring experience, and, more specifically, to determine the best mix of tech and touch to improve recruiting outcomes.”

Additional findings from the survey include:

  • Talent impact: 65% of employers globally believe HR tech will free up workers to focus on more knowledge-intensive tasks. That sentiment is even more profound in the US, with 82% saying HR tech will give hiring managers more time to focus on important tasks.
  • Business impact: 86% of US employers said a robust talent tech strategy has had a positive impact on their business.
  • Candidate search: 60% of US employers believe the task of searching databases for candidates should be mostly or completely automated.
  • Smart technologies here to stay: 73% of human capital leaders said smart technologies will have an equal or greater impact on their organizations this year.