Monster Buys JobsAhead For Rs 40 Cr

New Delhi | Updated: May 26 2004, 05:30am hrs
Once again, theres plenty of action in the online space with Monster.com, a global job placement website, announcing the takeover of a leading Indian job site, JobsAhead.com for around Rs 40 crore.

At a press conference, Monster.com announced that it has signed the acquisition deal wherein it has bought over JobsAhead.com from its stakeholders. Financial investors like ChrysCapital (a venture capital firm) and angel investors besides employees and the management held stake in JobsAhead.com.

We were waiting for the right opportunity to sell our company keeping the best interest of our stakeholders in mind. With this deal of around Rs 40 crore, all our shareholders including employees are now richer, JobsAhead.com chairman Puneet Dalmia told newspersons.

JosbAhead.com had given stock options to its all employees amounting to around 5 per cent of the companys equity base.

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JobsAhead.com clocked revenues to the tune of Rs 15 crore in the last fiscal ending March 2004 with net profit of Rs 3 crore. For the year before (2002-03), the companys revenues were only Rs 8 crore with almost nil profit as the company had reached the break-even point.

Monster.com is looking at this acquisition to strengthen its offerings within IT, as JobsAhead.com is a leading player in providing recruitment in the space of IT.

Dalmia Returns Home To Cement

Puneet Dalmia, the brain behind JobsAhead.com, an online recruitment firm, is now on his way to actively join his family business cement and sugar. Mr Dalmia, who is proud of clinching this acquisition deal at the right time, is on his way to scout for acquisition deals to strengthen the cement business.
We are looking at acquiring at least one cement plant in India, mainly in the South, with a capacity of 1-2 million tonnes, Mr Dalmia said.
We are looking at funding the acquisition through internal accruals, he added. Mr Dalmia will continue to work with the Monster team till the integration of the two companies is completed.

With this acquisition, we are now a leading player in India as the combined companies now hold around 70 per cent of the Indian online recruitment whereas the nearest competitor holds only 30 per cent, Monster Asia president and managing director Arun Tadanki said.

The combined entity will now have 1 lakh job postings, the largest database as well as traffic.

The 135 employees of JobsAhead will now join the 70-odd employees in Monsters team.

JobsAhead brand will continue for a year or so, till the time the integration of the two organisations is completed, JobsAhead vice-chairman Alok Mittal said.

Acquisition has been part of Monsters strategy for growth as in the last few months it acquired four companies including JobsAhead.

With the exception of JobsAhead in Asia, the other companies were military.com in the US, jobpilot.com in Pan-Europe and tinkle.com in the US.

We are open to more acquisitions in the future in Asia as and when we find the right match, Mr Tadanki pointed out.