TCV, Granite Ventures, Sequoia Capital launch sale of HireVue

  • HireVue has $93 mln in total funding
  • The deal likely to have sponsor outcome
  • Goldman Sachs advises company on the sale

HireVue, a recruitment software company backed by Technology Crossover Ventures, Granite Ventures and Sequoia Capital, is on the block, sources familiar with the process told Buyouts.

The process is in the early stages, the people said. It’s unclear when the first-round bids are due, they said.

HireVue, of South Jordan, Utah, provides enterprises with a video intelligence platform that combines video interviewing and pre-hire assessment.

The company allows employers to pre-record interview questions for job candidates, who can later answer those questions remotely from their electronic device. HireVue’s AI-driven software also augments human decision-making as it analyses candidates’ responses.

HireVue has hosted more than six million interviews for more than 700 customers worldwide, including for over one-third of the Fortune 100 and brands such as Unilever, Under Armor, Vodafone, Nike, Intel, Hilton, HealthSouth, Qantas and Carnival Cruise Lines.

Goldman Sachs, which is also a customer of HireVue, is advising the company on the sale process, the sources said.

The company generated nearly $50 million in Ebitda, the sources said. The deal is expected to fetch between $300 million and $400 million, they said.

The company founded in 2014 by Mark Newman is likely to be acquired by a private equity firm, one person said. Currently, HireVue is led by Kevin Parker, chairman and CEO, who previously was on boards on Intermedia, Cvent, and Polycom.

Not all investors are looking to fully exit HireVue, one source said. TCV may roll over some equity and partner with the company’s new owner, the person said.

The other investors, including Sequoia, Granite Shares, Investor Growth Capital, Peterson Ventures, and Rose Park Advisors’ Disruptive Innovation Fund, are looking to sell their stakes, the sources said.

HireVue has a total of $93 million in VC funding. In 2010, HireVue raised $5 million in a Series B funding round led by Granite Ventures. Peterson Ventures also participated in that round. Two years later, the company raised $22 million, including a $17 million Series C equity round, led by Investor Growth Capital. Most recently, in 2015, HireVue closed on $45 million in funding led by TCV.

HireVue and TCV declined Buyouts‘ request for comment. Granite Ventures, Sequoia, Peterson Ventures, Rose Park Advisors and Investor Growth Capital did not return request for comment before press time.

Action Item: Contact Matt Miller, HireVue’s board member and lead partner at Sequoia Capital.