The Netherlands-based Randstad Holding closed on an agreement to purchase San Jose, Calif.-based RiseSmart for $100 million Sept. 24, and the acquisition is expected to help the career transition services company going forward.
Led by Indian American Sanjay Sathe, RiseSmart was founded in 2007 and has since been seen as a threat to counterparts in the outplacement market. The key, according to RiseSmart, has been its blend of innovative technology and personalized service, which the company claims puts employees back to work 60 percent faster than the United States average.
Sathe, 53, found himself on the outside, looking for employment, and founded RiseSmart as a way to fix problems he detected when he was looking for work. His passion for the outplacement industry has kept the company progressing in its eight years.
“After finding myself on the receiving end of a layoff notification several years ago, I saw firsthand the cracks in the outplacement industry,” the entrepreneur told India-West, adding he knew something had to be done. “I founded RiseSmart with the goal of helping displaced employees and job seekers find new jobs faster.”
Sathe explained that traditional outplacement focuses on helping the unemployed cope with being jobless.
“RiseSmart helps those employees turn a setback into an opportunity by giving them relevant job leads, proactively facilitating networking and personal branding, and expediting the job search process to move their careers forward,” he said.
The Indian American earned his MBA degree from the Asian Institute of Management in Manila, the Philippines, and has completed an executive education program at the Wharton School of Business at the University of Pennsylvania.
Prior to settling in San Jose, Sathe worked for several years in Germany and the United Kingdom. Upon moving to the U.S., Sathe lived in Dallas before settling on the West Coast.
Despite the Randstad acquisition, Sathe is confident the RiseSmart brand will move forward without missing a beat.
“RiseSmart will continue to create solutions focused on the future of the rapidly changing workforce and build on its virtual and scalable model to achieve the next level of growth, as we continue to spread globally,” he told India-West.
Randstad’s resources and global reach, too, will help RiseSmart grow.
“Working with Randstad, the $23 billion global leader in staffing and HR services, we will be able to leverage their 55-plus years of industry insights, integrations and partnership, as well as their global reach and large recruiter network, while continuing to provide innovative, forward-thinking solutions that improve landing rates and time-to-placement for displaced employees,” he added.
Randstad will benefit from the acquisition as well. According to the company statement, the HR services company is “now better positioned to offer a more disruptive, progressive alternative to traditional services.”
“We have evaluated numerous outplacement solutions in the United States and around the world, and we have come to the conclusion that RiseSmart is the best in class in terms of technology, service and results,” Randstad North American chief executive officer Linda Galipeau said in a statement.
As part of the agreement, RiseSmart will continue to serve its customers using the RiseSmart brand as an independent operating unit of Randstad, and Sathe will remain the company’s president and chief executive officer. The company’s headquarters will remain in San Jose.