The Adecco Group, the world’s largest staffing firm, and private equity firm GTCR, announced today that they have entered into a definitive agreement to sell its investment in vendor management system provider, IQN/Beeline Holdings (‘Beeline’), to New Mountain Capital.

The proposed transaction will result in a gain on sale for the Adecco Group of approximately €110 million and after-tax cash proceeds of approximately €172 million. It is expected to close during Q3 2018.

New owners, New Mountain Capital, manages private equity, public equity and credit capital with aggregate assets under management totaling more than $20.0 billion. The company invests in industry niches that can do well whether the macro economy is good or not such as life-science supplies, software, and information data.

Alain Dehaze, CEO of the Adecco Group, commented, “The sale of the group’s stake in Beeline realises significant value for our shareholders and illustrates our disciplined approach to our strategy deployment and portfolio management.”

“As we invest in our ‘Perform, Transform, Innovate’ agenda, we also remain focused on ensuring that we are the best owner of every asset in our portfolio,” Dehaze said. “In the case of Beeline, it is clear that its merger with IQN in 2016 has created substantial value, establishing it as the leading independent Vendor Management System provider for extended workforce management solutions. We wish (CEO of Beeline) Doug Leeby and his team continued success as the business enters the next phase of its development.”

The activities of Beeline were deconsolidated from the Adecco Group in December 2016, following the merger of Beeline with IQN.

In the year ended 31 December 2017, the Adecco Group did not recognise any earnings relating to its investment in Beeline.

The transaction remains subject to customary closing conditions, including certain regulatory approvals. Additional terms of the transaction were not disclosed.