SuccessFactors on Thursday said that it will acquire Inform Business Impact, a privately held company that focuses on performance measurement and workforce planning software, for $40.5 million. The deal is the first in SuccessFactors' history.
Inform, formerly known as Infohrm, has about 134 customers, 24 of them in the Fortune 500. Inform is an on-demand software provider. The company will help build out SuccessFactors' business analytics service (statement).
In September, SuccessFactors made the move to focus on business execution software, which doubled its addressable market. In October, SuccessFactors raised more cash via a secondary offering. With cash on hand, SuccessFactors went shopping. Before the Infohrm purchase, SuccessFactors was focused totally on organic growth, said Paul Albright, chief marketing officer at the company.
Meanwhile, SuccessFactors said it has hired Judy Blegen as vice president of merger and acquisition integration. Blegen, who was operations director at Cisco Systems, was involved with corporate development and venture investments at the networking giant. The hiring of Blegen is a good indicator that SuccessFactors is planning more acquisitions.
Here's what Inform, which is owned by its CEO Peter Howes, brings to SuccessFactors:
- Data performance measurement tools;
- Benchmarking capabilities and the content that goes with the metrics;
- A global footprint since Infohrm operates in North America, Europe and Asia Pacific.
In 2009, Inform had about $15 million in revenue. SuccessFactors said the $40.5 million price tag breaks down like this:
- $25.5 million in cash;
- $15 million in SuccessFactors shares;
- The remainder based on performance and retaining key employees.
Here's a look at the Inform software:
Separately, SuccessFactors reported a fourth quarter net loss of 4 cents a share (statement). On a non-GAAP basis earnings were a penny a share. The results were in line with expectations. SuccessFactors reported fourth quarter revenue of $42.2 million, up 28 percent a year ago. Wall Street was expecting revenue of $39.72 million.