December 6, 2011 / 11:11 AM / 8 years ago

UPDATE 1-SuccessFactors to buy peer for $110 mln

Dec 6 (Reuters) - Human resources management software maker SuccessFactors Inc, which has been acquired by SAP AG, said it will buy privately held peer jobs2web for $110 million in cash, as it ramps up its services.

Minneapolis-based jobs2web provides online job marketing and advertising services to employers and helps them sift through potential job applicants via social media websites and search engines.

“We will be able to double our recruiting business with this buy,” SuccessFactors Chief Executive Lars Dalgaard told Reuters.

Jobs2web, which helps people find jobs, would complement SuccessFactors’ products that process job requisitions and interview processes. It counts 3M, Rackspace Hosting Inc and PepsiCo among its customers.

SuccessFactors expects the deal to add to its earnings immediately and does not see it posing any hurdles to the SAP deal.

On Dec. 3, SAP said it will buy SuccessFactors for $3.4 billion, as the German tech giant tries to bridge the gap with cloud software pioneer Inc and larger rival Oracle Corp in the software-as-a-service (SaaS) market.

Dalgaard said SuccessFactors would not limit itself to human resource management software after the SAP deal is completed and would diversify into a broader range of applications.

“We will expand into all of the very substantial cloud applications that they (SAP) have, like logistics, financial and accounting,” said Dalgaard, who is expected to be appointed to SAP’s executive board and lead its cloud business.

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