Hire Technologies Inc. (TSXV: HIRE), a Toronto-based staffing firm, agreed to acquire executive search firm Leaders and Co., Consulting in Governance and Leadership Inc.

Leaders has clients across Canada and offices in Montreal, Ottawa, Toronto, Winnipeg, Saskatoon, Calgary, Edmonton and Vancouver. The company also has a diversity and indigenous recruitment practice and, as a member of Penrhyn International, access to a global talent network. It reported C$3.9 million in revenue for its fiscal year ended Jan. 31.

The additional network will enhance Hire Technologies’ geographic reach into Québec and boost its EBITDA performance, according to the company.

“The partners at Leaders have created a successful practice based on deep research and exceptional customer service. I am convinced that they will contribute long-term value to Hire as well as to our clients and existing portfolio companies,” said Hire Technologies CEO Simon Dealy. “We also look forward to collaborating closely with the other Leaders’ affiliates in Vancouver, Edmonton, and Calgary and its international network through Penrhyn International.”

The definitive arm’s-length share purchase agreement, dated Aug. 5, calls for Hire Technologies to acquire all of the issued and outstanding shares of Leaders for a purchase price payable as to C$4.4 million in cash, 3,559,871 common shares at a deemed price of C$0.309 per share and C$1.0 million in an earn-out payable over three years in cash subject to meeting prescribed financial thresholds. 

The entire leadership team of Leaders — Richard Joly, Cynthia Labonté, Laurie Sterritt, Yanouk Poirier and Philippe Burton — will continue in the business following the acquisition.

Hire Technologies also announced it was provided with a term-loan facility of $5.0 million from FirePower Capital to continue its acquisition strategy. In addition, it announced a non-brokered private placement to directly support the acquisition in an amount of up to C$3.0 million.

Hire Technologies had recently announced several other acquisitions, including The Headhunters Recruitment Inc. in September 2020 and Kavin Talent Management and Taylor Ryan in December 2020. It acquired Pulsify in April.

The acquisition is subject to customary closing conditions, including TSX Venture Exchange approval, and the closing of the loan and concurrent financing.