The investment will help power the staffing industry’s digital transformation agenda.
Bullhorn®, the cloud computing company that helps staffing and recruiting organisations transform their businesses, announced that Stone Point Capital will become the lead investor to power the next phase of the company’s growth. Insight Partners and Genstar will remain investors in the business. Stone Point was attracted to Bullhorn on the strength of its long-term opportunity to serve the global staffing and recruiting industry, its consistent revenue growth, and its reputation for customer success. The entire Bullhorn management team will remain with the company to execute on its strategic roadmap and continue its mission to create an incredible customer experience.
The staffing and recruiting industry has increasingly embraced digital transformation, re-examining how their businesses should operate to drive deeper candidate and client relationships, to improve margins, and to compete effectively as the talent acquisition landscape fundamentally changes. The staffing and recruiting market is currently in the midst of transformational change, driven by several trends: 1) consolidation, necessitating process and system overhauls to facilitate greater responsiveness to customer needs; 2) a rethinking of service models, led by customer demand and exacerbated by the distributed nature of a COVID-impacted workforce, which requires flexible delivery frameworks predicated around candidate communication and engagement; and 3) increasing competition from peer firms and online staffing platforms alike, creating a need for speed and scale. Bullhorn is helping to shape this transformation, as companies invest in upgrading their technology infrastructure and business processes to meet the changing needs of their customers, candidates, and the industry at large.
Stone Point’s sector expertise in staffing and financial services will help to guide Bullhorn’s continued momentum with its pay and bill solutions, which allow staffing firms to align their sales and recruiting teams with finance and operations on a single platform that unifies operational and finance information so that firms can make better business decisions and deliver a superior customer experience. Stone Point is already an investor in one of Bullhorn’s fastest-growing partners, Prism HR, which provides an integrated payroll and benefits solution that extends the power of Bullhorn’s pay and bill solutions. The additional financial flexibility gained by Bullhorn in connection with Stone Point’s investment will enable the company to supercharge its previously announced Unified Workforce Management strategic roadmap to deliver a cohesive candidate experience through the entire recruitment lifecycle — from getting started to getting paid.
“We are very excited to be working with the team at Stone Point as we enter the next phase of Bullhorn’s growth,” said Art Papas, founder and CEO of Bullhorn. “We have a tremendous opportunity to help the global staffing industry execute on their digital transformation strategies, and Stone Point’s experience and industry expertise will be invaluable as we grow the company to the next level. We’re also happy that Insight and Genstar will remain investors, as they have been integral to helping us more than double our revenue over the last three years.”
Chuck Davis, CEO at Stone Point Capital, added: “We are excited about the long-term opportunity to work with Bullhorn. We are in the early stages of the industry’s adoption of digital transformation initiatives, and we couldn’t be more excited about partnering with an experienced team that knows the industry, their customers, and how to build a business with a deep focus on customer experience.”
“We’re thrilled to announce this investment by Stone Point in Bullhorn,” said Deven Parekh, Managing Director at Insight Partners. “While we weren’t actively seeking new investment, Stone Point’s deep experience in the finance and staffing industries and their strong conviction in Bullhorn makes them an incredibly valuable partner for the journey ahead. Bullhorn has and continues to outperform our projections as they help staffing firms digitally transform all aspects of their operations.”
“Despite the current macro-environment, we continue to find that great companies attract interest from leading investors,” said Eli Weiss, Managing Director at Genstar Capital. “It’s been great to work with Art and the team, and we’re looking forward to continuing to be a partner through this next phase of growth.”
Bullhorn expects the investment by Stone Point to close early in the fourth quarter of 2020. Terms of the deal will not be disclosed. Lazard and District Capital Partners served as financial advisors to Bullhorn in connection with this transaction.