The world’s largest recruitment firm, Adecco (PINK:AHEXF) (ADEN.VX) has announced it is taking over United States competitor MPS Group (MPS.N) in a deal worth $1.3 billion.The Adecco Group, based in Zurich, is a Fortune Global 500 company with operations in over 60 countries.
The deal has been accepted by MPS Group’s board of directors, but is still subject to shareholder and regulatory authority approval, Adecco said in a statement.
It said the transaction should be completed in the first quarter of 2010.
MPS Group, based in Jacksonville, Florida, provides temporary employment and consulting services in sectors including information technology, finance, accounting and engineering. It posted revenue of euro1.5 billion last year.
Adecco also said it will launch a mandatory convertible bond of 900 million Swiss francs ($885.8 million) to help fund the acquisition and strengthen its balance sheet.
Swiss-based Adecco said the acquisition would “significantly enhance” its position in the professional staffing business, particularly in the US, Canada and the UK.
Adecco chief executive Patrick De Maeseneire said: “We are delighted to have MPS Group become part of the Adecco Group, in a move that will see Adecco taking the world-wide lead in professional staffing.
“The acquisition is an important step in Adecco’s stated strategy to strengthen the higher-margin professional staffing business, which offers attractive growth over the coming years.”
Adecco said it expects to achieve £22.8m of annual savings within two years through operational efficiencies.
Timothy Payne, MPS Group’s chief executive, said: “We are pleased to be joining forces with Adecco. Not only will this transaction create substantial shareholder value, but the combination of MPS Group and Adecco will also be very positive for our employees, consultants and clients.