French talent platform Freelance.com (EPA: ALFRE) announced it plans to acquire STA Groupe, a specialist in salary portage (umbrella company) for independent contractors and which connects highly qualified consultants with companies.

Freelance.com signed a bilateral contract with STA Groupe. According to Freelance.com, the transaction will strengthen its range of services to freelancers and businesses by actively participating in the consolidation of the umbrella company market in France.

The acquisition, which will be carried out in cash, must take place at the beginning of January 2024.

After a turnover of €86 million in 2022, STA Groupe said it plans to achieve strong growth in turnover for the current financial year.

With the addition of STA Group, Freelance.com said it expects a combined 2023 turnover of more than €1 billion.

STA is in a segment that perfectly complements Freelance.com's existing offering, particularly in the area of IT skills, the group added.

Last month, Freelance.com announced the completion of the acquisition of 100% of the shares of OpenWork, a specialist in wage portage for the self-employed, mainly present in France and Belgium.

Laurent Perret, deputy general manager of Freelance.com and CEO of Helvetic Payroll, said, “The STA Groupe enjoys an excellent reputation among a clientele of freelancers and major accounts.”

“Beyond the synergies between our know-how to establish the leading position of the Freelance.com group in the wage portage market in France and Europe, the successive acquisitions of OpenWork and STA will enrich the talent pool of Freelance.com with nearly 15,000 active consultants.”

David Forner, founding president of STA Groupe, said, “After 12 years of continuous growth, I would like to support the STA Groupe with a partner capable of ensuring its sustainability and development. I was attracted by Freelance.com's long-term industrial project, which aims to facilitate the search for missions by freelancers and the search for talent by companies, particularly in the field of IT. The wide range of services offered by Freelance.com perfectly complements the specificities of our model and the quality of support for our clients.”

Further financial details were not disclosed.

Separately today, Freelance.com reported revenue increased by 10% to €419.5 million for the first six months ended 30 June 2023. The group had already reported Q2 results in August. The latest results published today include additional EBTIDA information.

The first half results published today show an EBITDA of €14.4 million compared to €12.4 million for the first half, an increase of 16%. Operating profit also increased to €12.9 million compared to €11.3 million a year earlier (up 14%). Net income rose by 1% to €8.9 million.

Looking ahead, the group said it remains confident in its development prospects, given its positioning in a very buoyant market and the external growth operations carried out and to come, with the integration of OpenWork and today's announcement of the planned acquisition of STA Group.

Freelance.com shares last traded at €3.60, up 4.96% on the day and 7.46% above its 52-week low of €3.35, set on 16 October 2023. The company has a market cap of €193.92 million.