VC-backed 58.com acquires ChinaHR.com
Chinese online marketplace 58.com has acquired local recruitment site ChinaHR.com from its parent company Sangroup, an Irish recruitment firm.
Financial terms were not disclosed but ChinaHR will continue to operate under the same brand, 58.com said in its official Weibo microblog. An internal letter obtained by local media disclosed that all employees' contracts with Sangroup will be terminated. The former parent company will address issues concerning lay-offs and compensation schemes.
Founded in 1997, ChinaHR connects job seekers and corporate hirers. It claims to be the first hiring site in China providing professional recruitment services for schools and corporates, as well as offering head-hunting services to fill high-level job positions.
US-based online recruitment company Monster.com purchased ChinaHR in 2008, pumping in a reported $240 million. However, the company was sold to Sangroup for just EUR30 million ($33 million) in 2013. The Irish company also operates Chinese online recruitment site Myjob.com.
ChinaHR's brand will help 58.com strengthen its market position in recruitment services, the US-listed classifieds operator said. It aims to upgrade ChinaHR's offerings and ramp up its business.
The investment came after 58.com agreed to buy a 43.2% stake in its domestic rival Ganji.com, backed by several PE and VC investors including The Carlyle Group and Nokia Growth Partners (NGP), in a deal worth around $1.61 billion.
In parallel to the investment, 58.com also received additional funding from Tencent Holdings. The Chinese internet giant invested $400 million, taking its stake in the company to 25.1%. Tencent paid $736 million for 19.9% of 58.com last July and said the two companies would use each other as the preferred partner in local services and work together in building out online-to-offline services (O2O).
SAIF Partners, DCM and Warburg Pincus are the company's VC backers. As of April 2014 - a couple of months before Tencent's entry - they held stakes of 14.7%, 13.5% and 17.9%, respectively.
Previous investments made by 58.com included interior decoration services platform To8to, real estate listing site Anjuke, online recruitment platform M91.cn, and designated driver service mobile app eDaijia.
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