IT Staffing Report: Feb. 12, 2015

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Recruit Holdings acquires Australian providers of IT staffing

Recruit Holdings is acquiring Australian IT recruitment firm Peoplebank and Australian staffing provider Chandler Macleod — the world’s 27th-largest staffing firm, which provides staffing in several segments including IT.

Japan-based Recruit is working to acquire 100% of the outstanding shares of Chandler Macleod for an estimated ¥28.9 billion (US$246.5 million). Since it is required to obtain approval for the acquisition proposal at a Chandler Macleod meeting of shareholders (approval by more than 50% by number of Chandler Macleod shareholders present and voting and by at least 75% of the votes cast on the resolution), as well as by the Australian court to carry out the procedures, a 100% acquisition of Chandler Macleod's shares through SOA may become impossible and the acquisition may not take place if such requirements are not fulfilled.

Following the acquisition, should it proceed, shares of Chandler Macleod will be acquired through Recruit Holding’s Australian subsidiary RGF Staffing Melbourne.

Recruit is also acquiring Peoplebank for a total consideration of ¥7.1 billion (US$ 60.6 million). Peoplebank, the 74th-largest global staffing firm, is also being acquired through Recruit Holding’s Australian subsidiary RGF Staffing Melbourne.

The acquisitions form part of Recruit Holdings’ strategy to challenge the top global firms and become the largest staffing firm in the world by 2020. The company financed the acquisitions from the funds raised by its IPO on Oct. 16.