M&A Intelligence Report: H MAXIMIZING SHAREHOLDER VALUE SINCE 1983

Transcription

1 M&A Intelligence Report: H MAXIMIZING SHAREHOLDER VALUE SINCE 1983

2 M&A ACTIVITY In H1 2014, 67 Staffing and Staffing Related M&A transactions were announced. M&A activity involving firms in the Information technology staffing was the leading segment in the first half of 2014 with 16 announced transactions followed by 13 light industrial and clerical staffing acquisitions in H HIGHLIGHTS The following graphs show M&A activity by Segment for Staffing as well as by sectors considered to be staffing related. STAFFING STAFFING RELATED Engineering, 1 F/A, 1 Healthcare, 7 Legal, 1 Search, 1 Commercial, 13 Software, 1 Consulting, 1 BPO, 1 Screening, 1 VMS, 3 RPO, 3 Exec. Search, 10 Jobboard, 4 IT Staffing, 16 Payrolling, 1 PEO, 3 Source Data: Staffing Industry Analysts, Capital IQ and De Bellas Research The following chart shows the period comparison for the most active segments: Commercial IT Staffing Healthcare Executive Search Engineering Finance & Accounting Legal Staffing Related H H

3 H NOTABLE TRANSACTIONS- Mitsui & Co., Ltd. acquired The Delta Companies, one of the largest providers of locum tenens in the U.S. Delta has revenue of $78 million. SAP AG (NYSE: SAP) agreed to acquire Fieldglass, a U.S. software supplier that specializes in managing contract workforces, furthering the German company s push into Internet-based applications. The transaction was valued at over $1B. IQ Navigator acquired software and related assets of ProcureStaff Technologies from Volt Information Sciences. IQ Navigator, the leading provider of non-employee workforce management solutions to Global 2000 companies GE (NYSE: GE) announced it will acquire API Healthcare, a healthcare workforce management software and analytics solutions provider. Financial terms were not disclosed. True Blue, Inc. (NYSE: TBI) acquired Seaton Corp. at a deal valued at $310 million. The combination will make TrueBlue the largest industrial staffing company in the U.S.. BUYERS Private companies continue as the largest buyer group by far - Private companies were the purchasers in 71% of the announced transactions for the first quarter of 2014 compared to 66% for all of For public companies - CT Partners, Corporate Resource Services and Staffing 360 Solutions, TrueBlue and Cross Country Healthcare are among those public firms reporting acquisitions for the first half of Lower transactions per buyer There Public was an average of one transaction per buyer in Equity Q3Lower transactions per buyer 24% 4% There was an average of one transaction per buyer in 5% Q vs. 1.1 for both the second quarter of 2007 as well as Q This creates a Domestic stronger market for sellers because there is little or no dependence on a small group of 96% buyers vs. 1.1 for both the second quarter of 2007 as well as Q This creates a stronger market for sellers because there is little or no dependence on a small group of buyers. Private 71% Private Foreign 3

4 H M&A TRANSACTIONS Date Acquired Acquirer Acquired Business Segment 1/2 The Condon Group Ltd Wipfli LLP Executive Search nd 1/6 Five Point Staffing Lyons HR Commercial nd 1/14 NCO Staffing Mitchell Martin (MMI) IT Staffing nd 1/14 Best Drivers Transforce Drivers nd 1/15 Aurora Systems Group, Inc. Stockell Consulting, Inc IT Staffing nd 1/17 Steverson Staffing The Hamilton-Ryker Group Commercial nd 1/28 Hospitality Staffing Solutions Ltd. HR Solutions Corp. Hospitality Staffing nd 1/31 Prillamin Group Workforce Unlimited Executive Search nd 2/2 Staff Management Group Corporate Resource Services, Inc. (OTCBB: CRRS) Commercial $5M Cash and $5M note 2/3 Poolia UK Ltd Staffing 360 Solutions, Inc. (OTCBB: STAF) Accounting/Finance $825,000 2/4 Levison Search Assoicates Jordan Search Consultants Executive Search nd 2/4 Alar Staffing Corporate Resource Services, Inc. (OTCBB: CRRS) Commercial nd 2/11 Excelsior Inc. The Richmond Group Executive Search nd 2/11 Third Coast Search LLC HireBetter LC Direct Hire nd 2/14 Loyalty Staffing Services First Rate Staffing Corp. Commercial nd 2/18 Abry Advisors Steward Partners Holdings LLC Executive Search nd 2/19 Questar Partners Employment Staffing Commercial nd 2/21 2AM Group LLC PeopleLink Commercial nd 2/22 Employ US The Staffing Group (OTCSS:TSGE) Commercial nd 2/24 Faststaff Travel Nursing Healthcare Staffing Services, LLC Healthcare nd 2/27 Delta Companies Mitsui Healthcare nd 2/27 Healthcare Staffing Services Fastaff Travel Nursing Healthcare nd 2/28 Ettain Group Inc. New Mainstream Capital IT Staffing nd 2/28 New Directions Search ZRG Partners Executive Search nd 2/28 Navigator Staffing Services Prostaff Commercial nd 3/3 Johnson Executive Search CT Partners (NYSE: CTP) Executive Search nd 3/4 Integrated Staffing Network Guardian Healthstaff Healthcare nd 3/12 Prosearch, Inc. Marcum Search, LLC Executive Search nd 3/24 Emtec (staffing division) First Tek IT Staffing nd 3/26 Engineering Laboratories, Inc. ASG Renessance Engineering nd Second Quarter Date Acquired Acquirer Acquired Business Segment Terms 4/1 Global Employment Solutions TZP Capital LLC IT Staffing nd 4/14 Parallel Partners Nextstep Systems IT Staffing nd 4/16 Glasshouse Technologies (US Div.) Signature Technology Group IT Staffing nd 4/21 HireStrategy Addison Group IT Staffing nd 4/24 Montgomery Professional Services Global Upside Accounting/Finance nd 4/29 Park Brown Intl. CT Partners (NYSE: CTP) Executive Search nd 5/5 LEHAN Solu Technology Partners IT Staffing nd 5/8 PartnerJD TrustPoint Legal nd 5/8 Gold Star Global Hank Anderson and Steve Ryan Healthcare nd 5/20 PeopleServe Staffing 360 Solutions, Inc. (OTCBB: STAF) IT Staffing nd 5/21 LeHan Solu Technology Partners IT Staffing nd 5/22 Royal Care Medical Staffing, Inc. Aequor Healthcare Services Healthcare nd 5/23 Hire Talent Arrow Strategies Direct Hire nd 5/29 AZ Nurses Choice Accountable Healthcare Staffing Healthcare nd 6/2 Seaton Corp. TrueBlue, Inc. (NYSE: TBI) Commercial $310 million cash 6/2 Metro Data Networks Hamilton-Ryker IT IT Staffing nd 6/3 Medical Staffing Network Cross Country Healthcare (NASD:CCRN) Healthcare $48.3 million cash 6/9 Focus Search Partners VACO Executive Search nd 6/18 Vega Consulting Artech Information Systems IT Staffing nd 6/18 CIPE Consulting Group Cumberland Consulting IT Staffing nd 6/25 Keystream, Inc. The Judge Group IT Staffing nd 6/30 Renaissance Solutions pte UST Global IT Staffing nd Note: De Bellas & Co. defines a transaction as an announced merger, acquisition or significant equity investment. The firm s statistics include domestic, as well as cross border transactions involving a participant with U.S. operations. The acquired entity includes staffing forms as well as other businesses. IT solutions transactions completed by a buyer having staffing operations and an IT Solutions seller. Terms 4

5 H M&A Staffing related transactions STAFFING RELATED Date Acquired Acquirer Acquired Business Terms 1/1 JS Services, Inc. Hawaii Human Resources Segment Payrolling nd 1/8 Procure Staff IQ Navigator VMS nd 1/15 isymphony The Hamilton Ryker Group VMS nd 1/21 API Healthcare General Electric Co. (NYSE: GE) Software nd 2/3 HRX RPO Seaton RPO nd 2/14 Distill Yahoo! Inc. (NASD: YHOO) Job Board nd 2/19 TSC Services, LLC Hire Velocity RPO nd 2/24 Sofica Group JSC (Bulgaria) TeleTech Holdings BPO nd 2/24 Talent Bin Monster Worldwide, Inc. (NYSE: MWW) Job Board nd 2/28 Compensation Solutions CoAdvantage PEO nd 2/28 Discovery Outsourcing CoAdvantage PEO nd 3/3 Nationwide Screening Services Corporate Resource Services, Inc. (OTCBB: CRRS) Screening nd 3/19 Oil Career Dice (NYSE:DHX) Job Board nd 3/20 Fieldglass SAP SE (NYSE: SAP) VMS nd 4/2 BroadBeam CareerBuilder (NYSE: GCI/MNI) Job Board nd 4/29 CPH WilsonHCG RPO nd 5/12 Advance Employment AssessPoint PEO nd 5/27 Vonlay, LLC Huron Consulting Group, Inc. (NASD:HURN) Consulting na Note: De Bellas & Co. defines a transaction as an announced merger, acquisition or significant equity investment. The firm s statistics include domestic, as well as cross border transactions involving a participant with U.S. operations. The acquired entity includes staffing forms as well as other businesses. IT solutions transactions completed by a buyer having staffing operations and an IT Solutions seller. 5