By Krystal Hu
-Recruitment software company iCIMS has raised fresh capital from U.S. private equity firm TA Associates after scrapping plans to go public, its chief executive told Reuters on Thursday.
Already backed by private equity firm Vista Equity Partners, iCIMS did not disclose how much it raised from TA Associates. People familiar with the matter said the latest financing valued the company at about $3 billion, including debt.
The people declined to be identified because the terms of the deal were confidential.
iCIMS CEO Steve Lucas said that as part of the deal, Vista Equity has sold part of its stake to TA Associates, and the two private equity investors now have equal holdings in iCIMS. Vista, which in April sold cybersecurity firm Datto for $6.2 billion, acquired a majority stake in iCIMS in 2018 in a deal that valued the company at $1.2 billion.
The software company had filed for an initial public offering (IPO) in August last year. However, the IPO market has virtually come to a standstill this year as stocks have plunged amid a tech-led market sell-off, forcing iCIMS to abandon listing plans.
“With that uncertainty in the market, we felt like the best path forward was to partner with TA to achieve our vision, which is to be a one-stop solution for everything you need to find and hire talent,” said Lucas.
The Holmdel, New Jersey-based company provides cloud-based software tools to help companies hire and track job applicants. It generates about $400 million in annual recurring revenue, and is growing at double-digit percentage rates while profitable, according to the company.
iCIMS is among a spate of software companies that got a boost from the onset of the COVID-19 pandemic, which forced businesses to increase spending on remote working technology. It counts over 4,000 companies as customers, including big names such as Amazon and IBM.
iCIMS builds tools that help companies recruit talent and manage the hiring process virtually. It has also developed technology to help recruiters meet diversity goals in the hiring process.