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Adcorp Holdings Ltd. offered to acquire Paracon, a provider of information and communications technology staffing based in Johannesburg, South Africa, for 662 million South African Rand (US$92.7 million).
The deal would trade Adcorp stock for Paracon shares, but Paracon shareholders will be able to choose cash instead of shares. Adcorp has limited the cash offer to 265 million Rand, or 40 percent of the purchase price.
“Paracon is a well-run, quality, cash generative business. As such, it is not our intention to tamper with what has been a successful formula but rather to further nurture and promote this winning culture within the business,” Adcorp CEO Richard Pike said in a statement. “Strategically, the proposed acquisition adds significant advantage as it will broaden the spectrum of comprehensive staffing solutions we are able to offer our clients under one roof, particularly in the specialized niche area of ICT where we currently have a limited offering.”
Adcorp ranks No. 37 on Staffing Industry Analysts’ 2011 list of largest global staffing firms. Publicly traded Adcorp is based in South Africa.