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International law firm Osborne Clarke has recently advised on three staffing company acquisitions in Germany and the UK, showing a trend towards services/solutions companies and outsourcing firms companies keen to acquire recruiters.
This indicates an important development in the M&A market within the staffing industry which commonly saw other recruitment firms or private equity companies buying staffing groups.
Staffing Industry Analysts has learned that some recent deals Osborne Clarke was involved in demonstrate this trend: the law firm, for instance, advised Indian engineering company Geometric Global Ltd on the acquisition of Munich-based 3 Cap Technologies, a technical recruiter.
Similarly, the acquisition by German IT staffing and software firm Allgeier of local competitor tecops personal, as well as the acquisition of the UK care staffing business Enara by outsourcing company Mitie, appear to confirm this trend.
Osborne Clark said that there is little current interest in IPOs in the staffing industry, explaining why buyers and investors have, in the past, mainly been private equity investors or trade buyers from within the recruitment sector.
But interest is now also growing from solutions or outsourcing companies to buy specialist staffing companies because of the market opportunities this offers. This month alone, Osborne Clark has started advising on five new deals, all of which involve outsourcing and solutions companies bidding for staffing companies.