Staffing provider BGSF Inc. (NYSE: BGSF) signed a definitive agreement to sell InStaff — which comprises substantially all its light industrial segment assets — to Jobandtalent, an online staffing platform based in Madrid, Spain, through its wholly owned subsidiary Sentech Engineering Services Inc.

Plano, Texas-based BGSF acquired InStaff in 2013.

The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions.

BGSF launched as a workforce solutions provider in 2007 with all revenue coming from the light industrial sector. As BGSF diversified into the professional and real estate segments, InStaff continued to develop long-term client relationships through on-site engagements in logistics and warehousing, reaching a 96% client retention rate in fiscal 2021, according to the company.

“The sale of InStaff is an important step in our strategic focus on long-term value creation and will allow us to focus our strengths where we are strongest,” said Beth Garvey, president and CEO of BGSF. “This strategic divestiture also allows us to deploy more capital into managed services and high-end consulting solutions as well as drive geographic expansion in real estate. Additionally, net proceeds from the sale provide us with added flexibility to pursue our ongoing acquisition strategy in addition to reducing debt.”

Founded in 2009, Jobandtalent last year secured a $118.9 million funding round targeted for expansion, including to the US. The company had $1 billion in revenue in 2021 and currently operates in nine countries across Europe and the Americas.

“The integration of InStaff demonstrates our ongoing commitment to growing our business in the US,” said Felipe Navío, co-CEO and co-founder of Jobandtalent. “This transaction will strengthen our global competitive position and will enable us to pursue new business opportunities at a rapid pace.”