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Saongroup, a Dublin-headquartered online recruitment business, has expanded its international operations with the acquisition of Chinese job board ChinaHR, previously owned by New-York based Monster Worldwide.
The firm confirmed the rumours on Tuesday, which will see Saongroup take a 90% stake in ChinaHR. Monster will retain a 10% holding after last year announcing plans to sell off the business.
Head of Monster Worldwide, Sal Iannuzzi, said: “By retaining a minority stake in the combined operation, we will be able to continue to serve our global clients with powerful recruiting technology solutions in China.”
The agreement takes place with immediate effect. Terms of the deal have not been disclosed. But media reports suggest that ChinaHR was sold for €22 million ($30 million), a tenth of its market value from five years ago.
Saongroup operates in 29 countries and already has a strong presence in China. Saongroup CEO Ciaran McCooey told the Irish Independent that the acquisition would help drive growth in the local market.
“We're very excited about it. It positions Saongroup for significant growth in the Chinese market. It brings with it a strong client list in blue chip companies. It has really positioned us in the tier one cities of Beijing, Shanghai, Guangzhou and Shenzhen, the mega cities,” he said.
“Our own business had a very strong presence in the tier two and three cities outside of that, but we weren't servicing the tier ones. It gives us a pan China presence now, which is excellent.”
Monster posted a net loss of US$194.2 million in the third quarter of 2012 and the firm will announce its fourth-quarter results on Thursday. The company’s share price was up +1% in yesterday’s trading to $5.68.