Fresh off the announcement that they are no longer interested in selling Dice.com, the IT job site, its parent company DHI has announced today that they will look to sell off several of it’s niche job sites including RigZone, Biospace, Hcareers and others.
The company made the announcement in a press release this morning that announced their quarterly earnings. Specifically it states:
The Company plans to divest a number of its online professional communities to achieve greater focus and resource allocation toward its core tech-focused business. The planned divestitures include: BioSpace, Hcareers, Health eCareers, and Rigzone. The Company is in the process of engaging a financial advisor to evaluate opportunities to conduct value enhancing divestitures of these non-tech businesses. Proceeds from any dispositions will be employed in a manner the Company believes is most beneficial to the interests of shareholders over the long-term, which at this time is reinvesting in the core tech-focused business, but may also include opportunities to pursue acquisitions or to return capital to shareholders in the form of acquisition of Company shares.
“Divesting certain of our non-tech focused businesses is a big enabler for the execution of our strategy, as it can free us to create a more unified organization, focused on becoming the leading global provider of recruitment and next generation talent solutions focused primarily on tech professionals,” said Mr. Durney. “The businesses we plan to divest are strong franchises with talented, committed people who make meaningful contributions to DHI. We believe these businesses could gain operating leverage from greater investment under different ownership, and concluded that it makes sense to consider transactions that enhance shareholder value.”
So it appears they are culling their site sin order to focus on the core business. With the amount of job boards being acquired these days my money is on private equity picking up these niche sites.