Acquisition of ages
Conference Call April 19, 2016
Executive summary
- Employee referral most effective recruiting channel, yet still offline and manual
- XING acquires leading technology for employee referrals; Tech & team deal to drive E-Recruiting business
- Ready-to-use product $\bullet$
- Experienced team
- New digital recruiting channel for XING E-Recruiting customers
- Scarcity of talent driving need for effective recruiting channels $\bullet$
- Additional channel next to active recruiting, employer branding and passive recruiting $\bullet$
- Acquisition of 100% of shares for CHF 3.2m with maximum earn-out of CHF 4.8m
Employee referrals: most efficient way to hire talent...
... but yet still offline / manual less digitalized process
Source: Jegipia / obvite, 2013
X
eqipia: best technology in employee referral
Key assets & KPIs
- Technology assets:
- Referrer front-end $\bullet$
- HR front-end $\bullet$
- ATS connections $\bullet$
- $\cdot$ Team
- 7 product/tech FTE
- Customers $\bullet$
- Swisscom, SBB, KPMG, $\bullet$ . Cern, EMC, etc.
- · Financial metrics 2015
- ~200k revenue
- $\cdot$ ~ (200k) EBITDA
N
Rationale of the deal
- . Talent remains scarce in D-A-CH labor markets
- Demand remains strong for more effective recruiting channels
- Employee referrals w/ potential to become strong recruiting channel
- . XING in unique position to offer digital referral product
- . eqipia tech & team deal to improve XING's time to market
New digital recruiting channel for XING E-Recruiting customers
|
ACTIVE
RECRUITING |
EMPLOYEE REFERRAL |
PASSIVE RECRUITING |
EMPLOYER BRANDING |
| Addressable market |
€1bn |
>20k COMPANIES |
€300m |
>35k COMPANIES |
| XING position |
#1 |
Target: #1 |
$#4-5$ |
#1 |
| Strategy |
Make market |
Make market |
Improve position |
Make market |
| Product / assets |
XING Talentmanager
(XTM) |
Employee referral
solution
xing.eqipia.com |
XING Stellenmarkt,
Jobbörse.com &
Kununu.com |
Employer Branding
Profile (EBP) &
Kununu.com |
Key characteristics of the deal
Key terms
- Acquisition of 100% of the shares $\bullet$
- Founders stay for at least 2 years $\bullet$
- Purchase price: $\bullet$
- Initial payment of CHF 3.2m
- Maximum earn-out payments of a total of CHF 4.8m (2 year period)
- Economic effective date: April 14, 2016 $\bullet$
Financial implications
- Tech & team deal enabling stronger growth in e-recruiting business
- Allocation to B2B E-Recruiting segment
- Revenue impact 2016 negligible due to launch of new integrated new product in Oct 2016
- EBITDA impact 2016 neutral despite PMI costs
Thank you for your attention.
Investor Relations contact details & social media channels
PATRICK MOELLER
Director Investor Relations
XING AG Dammtorstrasse 30 20354 Hamburg Germany
Tel.: +49 (0)40 419 131-793 $FAX.: +49(0)40419131-44$
(Please use this number to submit "WpHG notifications")
Email.: [email protected]
XING
$\boldsymbol{\chi}$
FOR A BETTER WORKING LIFE