HireVue, a video interview pioneer, acquires Modern Hire
HireVue has acquired Modern Hire, creating a combined customer base of 1,150 and little overlap. The companies aim to develop an integrated HR platform.
HireVue Inc. said Tuesday that it acquired Modern Hire Inc., a company with similar product offerings in some instances, including candidate assessments and video interviewing.
HireVue CEO Anthony Reynolds in an interview said Modern Hire has 450 customers and HireVue 700. Together, both companies have customers from more than half of the Fortune 100, and less than 2% of their customer base is shared, "which illustrates the massive opportunity we believe we have in front of us," he said.
Both companies are private, and the sale price wasn't disclosed. HireVue, based in South Jordan, Utah, has about 400 employees, and Modern Hire in Delafield, Wis., has about 200.
HireVue plans to create a single, integrated HR platform from the two product sets, but promises to continue supporting existing products while the integration is underway.
[Both companies] have a fundamental basis or a foundation in science and I/O [industrial-organizational] psychology.
Anthony ReynoldsCEO, HireVue
Both companies "have a fundamental basis or a foundation in science and I/O [industrial-organizational] psychology, which gives tremendous breadth to our assessment offerings," Reynolds said. He noted that together, HireVue and Modern Hire employ about 60 I/O psychologists.
One Modern Hire technology that was particularly interesting to Reynolds was its virtual jobs tryout, which lets applicants complete simulated tasks, he explained.
Analyst view
Josh Bersin, an independent HR industry analyst, said it is a big move for the two companies and possibly for their customers.
"HireVue pioneered video interviewing and built a lot of AI-based solutions to analyze, assess and streamline the video process of interviews," Bersin said. Modern Hire was working on what he terms interview intelligence, "a massive new market to analyze interviews [and] the interview process, and improve hiring quality."
Together, the two companies "have a much more complete solution for the process of assessing, interviewing, scoring, testing and hiring," Bersin said.
HireVue faces competitive pressures in the video interviewing market. "Many of their original ideas were copied by others, so they were losing some of their uniqueness and competitive edge," he said.
Bersin said the threats facing HireVue are from AI platforms such as Eightfold, SeekOut, ICIMS and others using large language models.
HireVue expanded its offerings in 2020 by acquiring AllyO, an AI recruiting chatbot vendor that automates recruiting.
Patrick Thibodeau covers HCM and ERP technologies for TechTarget Editorial. He's worked for more than two decades as an enterprise IT reporter.
