Xing acquires “Glassdoor for Germany” Kununu for up to €9.4m2013-01-08 7
Kununu, similar to Glassdoor, lets current and former employees anonymously rate their employers, and also provides job listings. It services German-speaking countries from its base in Vienna, and claims about three million page impressions per month.
Xing acquires Kununu – the terms of the deal
The acquisition is for 100 per cent of Kununu for an initial €3.6m. Additional payments worth another €5.8m may be added, depending on factors including Kununu’s revenue and EBITDA over the next two years.
As with Xing’s acquisition of Amiando in 2010, Kununu will keep its brand and web portal intact. Martin and Mark Poreda, the brothers who started Kununu in 2007, will stay as the company’s managing directors. Kununu’s 30 employees will keep their jobs.
Kununu “has been profitable and returning a positive cash flow since the previous financial year”, according to Xing’s corporate release today.
GP Bullhound in Berlin advised Kununu on their side of the deal.
Anonymous reviews – good for business?
The acquisition by Xing shouldn’t come as a total surprise – the two companies have been working together at least since early 2011.
XING CEO Thomas Vollmoeller said: “XING is already Germany’s market leader when it comes to social recruiting. Our acquisition of kununu will significantly boost our position within this growth market. By uniting forces, Kununu and XING can provide unique insights into companies. We can also help businesses to improve their image and, with it, their chances in the battle for top talent.”
Kununu CEO Martin Poreda added: “Together we achieve much more, can react more swiftly than before, and reach out to more customers. We want to ring in a new era for the jobs and careers industry where employer reviews are the new currency of employer branding.”
So far, so good. We’re still left with questions, though, about how complimentary the two platforms really are – and for whom. Job-seekers are likely to benefit from anonymous reviews as the “new currency of employer branding”, as will current employees.
Some companies in Germany, though, will be hoping to keep their Xing profiles as far away from their Kununu reviews as possible…