And the news about acquisitions keep on coming like gunfire! After the news of Walmart acquiring Jet.com for $3 billion, now Amsterdam-based Randstad Holding has announced the acquisition of US HQ-ed online recruitment portal Monster Worldwide.
The all-cash deal is said to be worth around $429 million and is expected to close by Q4 2016. Even after the deal gets closed, Monster will continue to operate as a separate entity.
Randstad is paying $3.40 per share to Monster, a 22.7% premium over its latest closing price of $2.77. However, the amount seems way lower if we compare it with its highest price during the 2000’s when it traded as high as $91. At that time, it had a market cap of $8 billion.
According to Randstad, this acquisition will enable them to expand its services to offer both clients and candidates tools for “increased efficiency and engagement”. It will also leverage Monster’s multiple distribution channels in order to build a comprehensive portfolio of HR services.
Once Monster was one of the most popular job portal and a significant player in the space. However, over the past few years, the company has been struggling. It posted a net loss of $124.2 million on revenues of $150.9 million for the second quarter that ended on June 30, 2016.
Despite layoffs, and attempt to reboot products and make small acquisitions, the company was not able to regain its position in the online job recruitment sector.
Commenting about this, Jacques van den Broek, CEO of Randstad, said,
In an era of massive technological change, employers are challenged to identify better ways to source and engage talent. The transaction is aligned with our Tech and Touch growth strategy and reflects our commitment to bringing labor supply and demand closer together to better connect the right people to the right jobs.
Tim Yates, CEO of Monster, said,
Joining Randstad provides a unique opportunity to accelerate our ability to connect more people to more jobs. Together with Randstad, Monster will be better positioned to fulfill our core mission, and our employees will benefit from becoming part of a larger, more diversified company. Equally important, this transaction offers immediate value to our shareholders.
Monster is currently active in 40 countries, and has around 50,000 employers in its database. On the other hand, Randstad, human resources and recruitment specialist, has a focus on recruitment centers. It has around 4,500 branches and claims to have placed some 2 million people in jobs.