DHI Group acquires AgileATS to enhance cleared talent recruitment

CENTENNIAL, Colo. - DHI Group, Inc. (NYSE:DHX), a technology sector recruitment company with a market capitalization of $127 million and impressive gross profit margins of 85%, has acquired AgileATS, an applicant tracking system designed for government contractors hiring security-cleared professionals, for an estimated $2.0 million, the company announced Wednesday.

The acquisition includes an upfront payment of $1.5 million in cash, with an additional $0.5 million potentially earned within two years based on performance criteria. According to InvestingPro analysis, DHI Group shows promising potential with analysts expecting net income growth this year, despite current market challenges. InvestingPro offers 5 additional key insights about DHI Group’s financial outlook.

The integration of AgileATS into DHI’s ClearanceJobs platform aims to provide a comprehensive recruitment solution for employers in the government technology sector, particularly benefiting small and mid-sized companies that often lack dedicated applicant tracking tools. The stock has shown strong momentum with a 59% year-to-date return, and InvestingPro’s Fair Value analysis suggests the stock is currently undervalued. A detailed analysis of DHI Group’s growth potential is available in InvestingPro’s comprehensive Research Report, part of their coverage of over 1,400 US stocks.

"This strategic move advances our long-term growth strategy by integrating purpose-built technology that delivers scalable, AI-powered solutions to government contractors facing complex and growing hiring demands," said Art Zeile, CEO of DHI Group, in a press release statement.

The AgileATS system offers automated job postings, streamlined applicant workflows, enhanced sourcing capabilities, and analytics features that will be incorporated into the ClearanceJobs platform.

Alex Schildt, President of ClearanceJobs, noted that employers in the cleared space need tools to meet increasing demands of federal hiring, and the integration will help "streamline and simplify cleared hiring."

DHI Group operates two AI-powered career marketplaces focused on technology roles: ClearanceJobs and Dice. The company’s algorithm manages over 100,000 unique technology skills to connect recruiters with technology professionals.

In other recent news, DHI Group Inc. reported its Q1 2025 earnings, highlighting a mixed performance. The company exceeded earnings per share (EPS) expectations, achieving an actual EPS of $0.04 compared to the projected -$0.01. However, the revenue did not meet forecasts, coming in at $32.3 million against an expected $33.8 million. These results indicate a stronger-than-anticipated profit margin but a shortfall in sales figures. The earnings announcement was followed by notable stock volatility, although specific price movements are not detailed here. Analysts have not provided any recent upgrades or downgrades for DHI Group Inc. These developments are part of the company’s ongoing financial narrative.

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