Xing SE, the company behind the career network Xing, is taking over Honeypot GmbH for EUR 22 million effective immediately. The Berlin-based start-up provides a job platform that allows companies to send applications to IT experts – not vice versa. The purchase of Honeypot is one of the largest takeovers in Xing’s history. The company also plans to rename itself “New Work SE” in summer 2019 as part of its growth strategy.
Matching IT skills to jobs
The price of the takeover may rise to EUR 35 million, if certain operational targets are achieved within the next three years. Digitalisation, a shortage of skilled workers and changing world of work are particularly noticeable in the tech industry. Germany had a total of 82,000 vacant IT jobs in 2018, according to a Bitkom study. Companies often have to compete for the best potential employees to keep up with their rivals. Honeypot aims to create ideal job matching conditions by allowing companies to apply to developers outlining the salary and requirements. The developers can in turn indicate their preferences about programming languages, salary expectations and work location. The IT platform has about 100,000 tech specialists from all over the world and 1,500 registered companies at present. The Honeypot team has 50 members.
New Work and Xing’s corporate activities
The acquisition should give Xing an opportunity to strengthen its position on the global market and beyond the German-speaking region. Honeypot is the leading, tech-focused job marketplace in German-speaking countries and the Netherlands, the company said. The start-up plans to expand its business in the German-speaking regions quickly and is also eyeing the development of more international markets. Xing will invest in the expansion. Thomas Vollmoeller, CEO of Xing, said: “The takeover allows our product range to grow by another genuine provider of New Work. Honeypot focuses on the candidates and enables them to find the job that meets their individual preferences.” The acquisition of Honeypot is considered a milestone in the implementation of corporate strategy. To pave the way for further growth, Xing SE plans to rename itself New Work SE in the second half of 2019. Xing’s subsidiaries and brands such as Kununu or HalloFreelancer means the company is now far more than just a network, said Vollmoeller, adding: “New Work forms the bracket around all our corporate activities.”