Insight, Genstar prep sale of recruitment software company Bullhorn

Lazard has been engaged to advise the company on its anticipated sale process, which is expected to kickoff in Q2.

Insight Partners and Genstar Capital are preparing to exit their investment in recruitment software company Bullhorn, six sources familiar with the matter told PE Hub.

Bullhorn is working with Lazard on the anticipated sale process, which is expected to kickoff in Q2, the sources said.

Bullhorn, based in Boston, provides customer relationship management and operations software for the recruitment industry.  The company offers a cloud-based platform with services including applicant tracking, onboarding, executive search, invoicing, time and expense management, among other things.

Bullhorn provides software services to more 7000 staffing agencies globally and its clients include Apex Systems, ALKU, MedSys Group and LaborMAX Staffing. The company employs more than 650 people globally.

The process hasn’t launched yet, but sources estimated the company’s EBITDA ranging from $70 million to $100 million. The company generates nearly $200 million in revenue, one person said. One source speculated the sale could value the company at up to $1 billion, though it’s still early in the process.

Bullhorn has long had a private equity owner. In 2008, Boston-based VC firms Highland Capital Partners and General Catalyst invested $26 million in Bullhorn, according to an announcement at that time.

In 2012, Vista Equity acquired the company. Five years later, in October 2017, Insight Partners acquired Bullhorn from Vista. As part of that deal, Genstar joined as an investor in the company, becoming a minority stakeholder.

The company is likely to attract interest from PE firms yet again, the sources said. However, one source cautioned, its new owner should be comfortable with the cyclicality of the staffing and recruiting software business should the economy approach a downturn.

The company completed a number of add-on acquisitions in recent years. In January, Bullhorn acquired Herefish, a provider of staffing business process automation. In the fall, the company acquired Erecruit, a provider of applicant tracking and pay and bill solutions for the staffing and recruiting industry.

Insight has been active on the sell-side. The firm relaunched a sales process for supply chain software provider E2Open, sources told PE Hub recently. The firm also is exploring options for Diligent, a software provider for board members and executives, PE Hub reported in February.

Insight Partners and Genstar declined to comment. Lazard and Bullhorn did not return PE Hub’s requests for comment.

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