Dutch staffing company Randstad Holding NV (RAND.AE) agreed to
pay $709.8 million in cash to acquire SFN Group (SFN), a deal that
would boost the company's presence in the highly fragmented North
American human-resources-services market.
Shares of SFN soared 51% to $13.92 after hours, as the
$14-a-share offer is a 52% premium to Wednesday's closing
price.
Randstad said the acquisition would make it the third-largest HR
services provider in North America, where combined operations would
have revenue of $4.6 billion. Randstad added the deal would allow
the company to expand its geographic coverage, cross-sell and boost
market share in many segments, including the professional and
administrative businesses. The deal is expected to immediately add
to Randstad's earnings.
The SFN purchase is subject to regulatory approval and the
tender of at least 50% of SFN's outstanding shares. Both boards
have approved the transaction, and Randstad said it expects the
transaction will close in September.
Randstad intends to finance the deal with borrowings under its
existing credit facilities.
In April, Randstad reported its first-quarter profit jumped 89%,
helped by continued growth in the German, French and North American
markets. SFN in late April reported it swung to a first-quarter
profit as revenue jumped.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com