Silicon Valley-based outplacement provider secures backing of staffing giant to further capitalize on the rapidly changing workforce and propel its virtual and scalable model to the next level of growth.
SAN JOSE, Calif. – Sept. 25, 2015 – RiseSmart, the leading provider of contemporary career transition services, today announced that it has entered into a definitive agreement to be acquired by Randstad Holding nv (AMS: RAND), one of the largest HR services companies in the world. RiseSmart will continue to serve its customers under the RiseSmart brand as an independent operating unit of Randstad focused on technology-led solutions.
By acquiring a leader in the fast-growing virtual outplacement space, Randstad is now better positioned to offer a more disruptive, progressive alternative to traditional services. The move underscores Randstad’s commitment to investing in emerging technologies while offering a more comprehensive suite of services to its clients. RiseSmart, boasting a growing roster of clients with global footprints, is now even better positioned to serve them with the support of Randstad, whose operations represent more than 90 percent of the global HR services market.
“RiseSmart is an outplacement innovator and a perfect fit for Randstad,” said Linda Galipeau, CEO of Randstad North America. “We have evaluated numerous outplacement solutions in the United States and around the world, and we have come to the conclusion that RiseSmart is the best in class in terms of technology, service and results. Adding RiseSmart’s offering to our portfolio aligns well with our mission of addressing the full workforce continuum through a single integrated approach, and matches the strategy of our Randstad Innovation Fund where we seek to anticipate and shape disruption of how employers engage the workforce.I am inspired about what we, together, will be able to offer our customers to strengthen employer brands, improve retention and re-engage talent.”
Since its founding in 2007, RiseSmart has emerged to challenge long-established players in the multi-billion-dollar outplacement market. The key to the company’s rapid rise has been its distinctive blend of innovative technology and personalized service, which helps put transitioning employees back to work more than 60 percent faster than the national average – and typically with equal or higher pay. Earlier this month, RiseSmart launched RiseSmart Spotlight, a wholly updated version of its flagship solution, which industry analysts have called “astonishing” for its innovation and utility.
“Becoming part of Randstad empowers RiseSmart to fundamentally accelerate our growth trajectory,” said Sanjay Sathé, RiseSmart founder and CEO. “We see growing opportunities for outplacement in North America and around the world. Randstad is the leading player in the HR space and opens us to a vast set of clients and relationships, which bring greater opportunities. Similarly, our proprietary technology platform provides a powerful alternative to what Randstad competitors have today. It allows for technological agility, addresses the changing nature of the outplacement business and complements Randstad’s total suite of offerings.”
RiseSmart will remain in San Jose and Sanjay Sathé will continue to serve as RiseSmart’s president and CEO. Randstad is paying USD 100 million for the transaction, which is effective September 24, 2015.
RiseSmart’s growth since its founding has been fueled by funding from investors including Norwest Venture Partners, Storm Ventures, Accel-KKR and angel investors, who successfully exit with the transaction.
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