Job Search Engine Bought By Japan’s Recruit Co.

Recruit Co. Ltd., a firm that once brought Japan’s government to its knees in a 1988 scandal, has purchased popular job search engine logoBoth Indeed and Recruit Co. are privately held companies. No dollar or yen value was given for the purchase. However, published reports speculate Recruit Co. may have paid as much as US$1 billion for Indeed.

Tokyo-based Recruit Co. has about 5,000 employees and is a diversified international multi-media publishing firm. It operates in a number of specific markets including bridal and automotive.

The merger has national and international significance for both job seekers and employers seeking workers., based in Stamford, Conn., was launched in 2004 by Paul Forster and Rony Kahan. It was the first comprehensive jobs search engine. Indeed now has more than 500 employees and operates in more than 50 countries and in 26 languages.

Masumi Minegishi, Recruit Co. Ltd., CEO

Masumi Minegishi, Recruit Co. Ltd., CEO

Indeed attracts 80 million unique visitors per month. It is the number one job site in the U.S. as well as in, Canada, the UK and France. Indeed is also a leader in worldwide mobile job search.

With Recruit Co. supplying the capital, plans to expand in Asia, while continuing its growth in Europe and the Americas, according to a press release announcing the deal.

For its part, Recruit hopes to take on the other major jobs boards, such as and and is planning to raise the money for the fight.

Recruit Co. Goes Public 24 Years After Insider Trading Scandal

Recruit Co. plans to go public within the next year.

It will establish holding company, Recruit Holdings Co., in October 2012 and it will be listed on either the Tokyo Stock Exchange or another exchange, according to a 27 June 2012 report in the Japanese newspaper The Yomiuri Shimbun.

Recruit Co. has been on a buying spree in the U.S. for the past two years.

Recruit Co.'s Higashi Shinbashi building

Recruit Co.’s Higashi Shinbashi building

Recruit Co. Ltd. acquired the U.S. and European operations of Advantage Resourcing for $410 million at the end of 2011.

Advantage Resourcing, which was ranked at the 11th largest global staffing provider by Staffing Industry Analysts, had revenues of approximately $1.4 billion in their fiscal year ended 30 June 2011. Advantage Resourcing had 250 locations, 22,000 employees and more than 6,000 clients.

Recruit Co.’s purchase of Advantage Resourcing followed its October 2011 acquisition of Staffmark. Staffmark was the 14th-largest U.S. temporary staffing firm at the time deal. The Staffmark was valued at $295 million by Recruit.

Recruit Co. acquired The CSI Companies, a Jacksonville, Fla.-based temporary staffing provider, in 2010.

“Recruit aspires to be the leader in HR and recruitment services worldwide,” said Masumi Minegishi, CEO of Recruit Co., in a statement announcing the Indeed deal. “Our acquisition of Indeed is a critical step in achieving that goal and we are excited to help build on Indeed’s number one position in job search.”

Indeed will become an independent operating unit of Recruit Co., led by Indeed’s current senior management team, according to the press release announcing the deal. All of Recruit Co.’s senior management is Japanese, according to the company’s website.

Human resources and job search information is Recruit Co.’s original core market, going back to its start in March 1960 when it published magazines for job-hunting Japanese college graduates. By the late 1980s, Recruit Co. was involved in a number of other industries, including real estate.

Recruit Group Org. Chart

Recruit Group Org. Chart

However, Recruit Co. rose to infamy in 1988 in what became known both in Japan and internationally as the Recruit Scandal.

The company’s then-chairman offered insider deals and favors to numerous high-ranking Japanese government officials and media executives in connection with a public stock offering of a Recruit Co. subsidiary. Among the many politicians involved included Japan’s Prime Minister Noboru Takeshita, a former prime minister and the chief cabinet secretary.

Takeshita’s cabinet was forced to resign. Some of its members later returned to political prominence and Recruit Co. regaining its corporate footing, but remaining privately held.

Recruit Co. Ltd. had ¥327.69 billion, US$3.095 billion, in revenue its fiscal year ended 31 March 2011. Staffing Industry Analysts ranked recruit as the No. 6 largest global staffing firm in 2011.

Recruit Co. also is also involved some big job search deals in China. In 2006, Recruit partnered with, one of China’s two largest job search websites.

Statement from Recruit  Co’s CEO on the company’s English language website–

“I believe that “optimally matching industries and people”, a task performed by Recruit Group for society, will remain our primordial role and strength, even in the IT era. Therefore, we will strive harder than ever to help you “meet your opportunity” by improving all the products and services of Recruit Group continuously. We will give you optimal support as well as develop services, not only within Japan but also worldwide.”

–Masumi Minegishi
President and Representative Director, CEO
Recruit Co., Ltd

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