LinkedIn has acquired Bright, creator of a job matching algorithm, for approximately $120m (£73m).
Bright, which launched three years ago, built its algorithm for matching job seekers and employers, based on a initial clinical trial with 'hundreds of talent acquisition professionals' to ascertain what made prospective candidates attractive for particular roles.
“We heard stories of talented people applying to dozens, even hundreds of jobs, without hearing back. We heard stories of recruiting teams doing their best to screen through the mountains of incoming resumes,” said Bright founder Eduardo Vivas. “Today, employers complain that there are no qualified applicants, yet qualified applicants often have their resumes overlooked. This marketplace inefficiency called for a technological solution and we resolved to heed that call.”
The acquisition will help Bright apply its technology at scale, and give it the opportunity “to apply this technology across the entire economy”. The benefit for LinkedIn, which already sends its users customised job postings, isn't difficult to imagine. Vivas' statement suggests that Bright's offering will be shuttered and incorporated into LinkedIn: “We may become less visible than we were before, but it’s now more likely than ever that you’ll feel the impact of our work”.
The $120m price, which is still subject to adjustment, is made up of 73 per cent stock and 27 per cent cash. The acquisition is expected to close during Q1 2014.