A local high-tech recruitment firm has expanded its footprint into Toronto with the acquisition of Vestiigo, a startup staffing company.
Talentlab specializes in talent acquisition for high-tech senior executives and had been looking to find ways to access the Toronto market. The two companies met and realized they shared similar values but served different demographics, said Doug Martin, president of Talentlab.
The local firm recruits specialized, senior positions while Vestiigo works in the startup space. It also has a large online community and maximizes social media in a way that Talentlab has not, Mr. Martin said.
The acquisition, which was quietly finalized in November but not publicized until this week, was the result of a conversation between the two companies to help each other expand their offerings.
“We said, ‘Who is going to acquire who here? Do we merge, do we partner?’” Mr. Martin recalled.
The Vestiigo office and its three employees will remain in Toronto and retain its branding for the time being, as it will continue to take on more early-stage customers. Clients who have matured beyond Vestiigo’s expertise will be introduced to Talentlab.
Based in Kanata, Talentlab has seven employees and 80 contractors, with one new hire coming on as a result of the transaction. Although the company plans to continue to grow, it will hire organically as the need arises, Mr. Martin said.
No new customers have signed on yet, but a number of Vestiigo clients have expressed interest in additional services that Talentlab could offer, he said. Additionally, Talentlab will introduce Vestiigo with startups and early-stage companies in Ottawa.
Any diversification is a good thing during a market slowdown, Mr. Martin said. As head of a 15-year-old company, he saw the days where venture capital funding flowed freely and companies were willing to take on aggressive hiring plans.
“Today, it’s not like that,” he said. “Companies have to be very strategic and cautious. Every dollar has to be accounted for.”
Talentlab will continue to focus on high-tech firms. While declining to name specific companies it has worked with, Mr. Martin said you would see many of them while driving down March Road in Kanata. Most of its clients are in Ottawa, with some across the country and in the United States.
Financial terms of the acquisition were not disclosed.