Staffing software company Bullhorn announced yesterday it acquired Erecruit, a provider of applicant tracking and pay and bill solutions for the staffing and recruitment industry. The deal closed yesterday.

Erecruit will operate as a business line under Bullhorn. Terms of the transaction were not announced.

Art Papas, founder and CEO of Bullhorn, commented, “We’re excited about the IP, the technology they build, and we’re excited about the talent.”

Papas said Bullhorn announced its Bullhorn One middle office product earlier and it generated much demand. At its end, Erecruit has developed a lot of intellectual property around the middle office — which includes processes from recruitment and sales to payroll and billing — and it has a team of people with expertise in the area. Given the synergy, the technology and people made this the right time for the acquisition, Papas added.

“We’re really focused on the digital transformation of the staffing industry and the first step of that is digitising all the information that a staffing firm needs to run its business,” he said.

Bullhorn said the acquisition of Erecruit will assist in furthering the already-significant market momentum of Bullhorn One and help the company drive greater productivity and results for customers of Bullhorn and Erecruit.

Additionally, for Erecruit’s customers, becoming part of the Bullhorn family means access to USD 40 million in annual research & development and technical operations expenditure, a strong delivery engine and experience delivering enterprise projects at scale, continued innovation (including investments in cutting-edge artificial intelligence research and technology), and unparalleled staffing expertise developed over twenty years.

Moving the processes, including the middle office, to the cloud will enable the introduction of automation and artificial intelligence to help power the processes. With this deal, Bullhorn will have 225,000 staffing professionals and millions of temp workers using its products.

“We’re really now in a position where we can start to drive change for our customers and the industry,” Papas said.

Erecruit’s four brands are Erecruit, Bond, TempBuddy and Innovantage. In addition, Erecruit’s portfolio includes eStaff365, an onboarding solution.

Bullhorn plans to maintain and support Erecruit products moving forward and, in some cases, will make significant investments to grow several product lines. In addition, investment in Bullhorn’s own products will remain unchanged.

Erecruit’s management team, including founders Judd Hoffman and Danko Fatovic, will join Bullhorn. Fatovic will report to Bullhorn Senior VP of Engineering Jay Pennington. Hoffman and Sara Moss, Erecruit’s VP of staffing best practices, will report to Bullhorn Chief Revenue Officer Mike Restivo.

Erecruit CEO Dominic Gallello will report to Peter Linas, Bullhorn’s executive VP of corporate development and international. In addition, TempBuddy founder Rod Smyth will report to Mitesh Ashar, Bullhorn’s senior VP of product management.

Bullhorn is not changing Erecruit’s organisational structure or processes.