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The US-based staffing firm, Allegis Group, has signed an agreement with Morgan & Banks Investments (MBI) to privatise the listed Australian HR BPO and recruitment firm, Talent2, (TWO:ASX) by jointly purchasing all shares in the firm. The deal will extend Allegis’s footprint in the fast growing Asia Pacific region and create a closer bond with Talent2 with whom it has had a strategic partnership for three years.
MBI is owned by the founders and major shareholders of Talent2, Andrew Banks and Geoff Morgan. The privatisation is expected to be finalised by September 2012 following approval by shareholders of a recommended cash offer at AUD0.78 per share, a premium of 98.5% to the average share price in the month leading up to the announcement.
Upon acceptance of the offer, ownership of Talent2 will be 50% in the hands of Allegis and 50% in the hands of Andrew Banks and Geoff Morgan. However, the existing management team will remain in place to drive the business forward. Andrew Banks will continue to operate as Chairman, John Rawlinson as CEO with Geoff Morgan remaining on the Board. The offer implies an equity value for the company of approximately AUD115 million.
Allegis Group Services (AGS), a subsidiary of Allegis Group, and Talent2 have worked together since 2010, providing global solutions in the areas of Recruitment Process Outsourcing (RPO) and Managed Services Provider (MSP) Solutions to shared clients.
“Allegis Group continues to explore opportunities to expand our international footprint. Allegis Group intends to extend its footprint into Asia Pacific markets through its investment in Talent2 and will benefit from Talent2’s depth of expertise in recruiting, learning, development, payroll and RPO, as well as its breadth of coverage across the Asia Pacific region,” said Chris Hartman, Allegis Group’s President of International Operations.
Commenting on the agreement, Talent2 CEO John Rawlinson said that “Whilst our current focus in APAC will not change, we have always recognized the importance of being connected globally. A closer partnership with Allegis will deepen our base in the Americas and Europe enabling us to compete more strongly in the global market place. Today’s announcement further cements our intention to service global companies. We believe this is a positive announcement for staff, management, customers, partners and shareholders.”
Allegis Group is the largest staffing firm in the US with offices in Europe and Asia. Its business units include Aerotek and TEKsystems and the company trades as Aston Carter in the UK.
Talent2 was founded in 2003 and operates in over 40 offices in 31 countries across the Asia Pacific region, Middle East, UK and USA.