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Randstad Holding NV to buy US jobs site Monster Inc for USD 429 M

Randstad Holding NV to Buy US Jobs Site Monster Inc for USD 429 Million
Randstad Holding NV to Buy US Jobs Site Monster Inc for USD 429 Million

Randstad Holding NV to buy US Jobs site Monster Worldwide Inc for USD 429 million. According to the agreement, Randstad will buy all of the outstanding shares of Monster for USD 3.40 per share in cash. This will snap up a pioneer of the online job-posting industry and boosting the Dutch recruitment giant’s position in the U.S. The move will help strengthen the Dutch giant’s position in Human Resources Services it offers.

Monster.com is one of the most visited employment websites in the United States and one of the largest in the world. It is owned and operated by Monster Worldwide, Inc. Monster, based in Weston, pushed into the then emerging business of digital recruiting in 1994. Now it offers staffing services in more than 40 countries. But in recent years, it too, has become more of a traditional player.

It has struggled to keep up with an onslaught of competitors, including niche, online job boards. Recruiters have also gravitated to networking sites like LinkedIn Corp., which connects companies, recruiters and employees, who may or may not be looking for jobs right away.

Upon completion of the deal, Monster will delist from the New York Stock Exchange, and function as a separate unit under Randstad. It will retain the Monster brand. The deal is subject to regulatory consent and other conditions.

Randstad agreed to pay USD 3.40 a share for Monster. This represents a 22.7% premium to Monster’s closing stock price on 8 August, the company said in a statement. It is however a climb down from the USD 51 the shares were priced at in 2007, and the USD 91 peak they touched soon after the company’s IPO in the late 1990s. The Dutch multinational human resource consulting firm said that it would finance the deal through existing credit facilities and expects to complete it in the fourth quarter of this year. The deal will instantly add to Randstad per-share earnings, the company said.

After the deal, Monster “will be better positioned to fulfill our core mission, and our employees will benefit from becoming part of a larger, more diversified company,” said Monster Chief Executive Tim Yates.

Randstad ranks itself as the second-largest, human-resources services provider in the world, behind Switzerland’s Adecco Group AG. It offers a series of placement and job-search services, including a network of walk-in job placement branches.

It is a smaller player in the U.S., however, where it competes with Manpower Group. Randstad generated revenue of GBP 19.2 billion (USD 21.3 billion) in 2015, but only GBP 4.7 billion of that came from North America.

It has recently used deal making to push into the U.S. In September, it agreed to pay $100 million for U.S. startup RiseSmart, which provides job placement analytics.

It has been on an acquisition tear of late elsewhere. Earlier this year, it bought Obiettivo Lavoro, an Italian recruiting agency for GBP 102.5 million. It also bought Japan’s Careo Group, a temporary-staffing provider, for an undisclosed sum. It is also in the process of completing a GBP 420 million purchase of French rival Ausy SA.

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ayushi jain

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