IT Staffing Report: Jan. 7, 2016

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General Employment buys IT staffing provider

General Employment Enterprises Inc. (NYSE MKT: JOB) acquired Dallas-based IT and professional staffing company Paladin Consulting Inc.

The acquisition expands General Employment’s footprint in Texas and Washington, DC, and adds MSP, VMS and RPO service capability in the IT and professional staffing services sector.

Paladin’s markets include Seattle; Charlotte, NC; Atlanta; Richmond, Va.; Framingham, Mass.; and metro Washington DC. Targeted industries include retail technology; eCommerce and healthcare technology.

Under the terms of the sale and purchase agreement, General Employment acquired 100% of Paladin’s common stock for consideration including cash, stock, seller financing and earn out. The acquisition is expected to add from $16 million to $18 million to General Employment’s projected revenue for calendar 2016.

“Paladin, led by Chairman Enoch Timothy, exemplifies the ideal professional staffing company providing a vast array of human capital solutions in a number of areas that are in high demand,” said General Employment Chairman and CEO Derek Dewan. “The acquisition allows the company to increase its service capability nationwide. In addition, we are fortunate that Enoch Timothy brings a dedicated recruiting and sales team to our company to help grow our combined organization. The acquisition fits within our strategic growth strategy, which includes expansion of our IT staff augmentation and solutions presence into key markets where there is significant spending for IT staffing services and increasing our professional services capabilities in accounting and engineering.”

Paladin Chairman Enoch Timothy is president elect of TechServe Alliance, the trade association of the IT and engineering staffing and solutions industry in the US.

“I am thrilled to be joining a company with explosive growth potential like General Employment,” said Timothy. “CEO Derek Dewan has a winning business model and a proven track record of success. Our team looks forward to working with an established staffing and human resource solutions visionary like Derek and repeating the success he achieved building global staffing giant MPS Group and its specialty staffing divisions including Modis.”

General Employment General Employment in the past year also acquired Scribe Solutions, Agile Resources and Access Data Consulting. General Employment last week reported net revenue rose 9% to $43.4 million in its fiscal year 2015 ended Sept. 30. With completed acquisitions to date, General Employment estimates combined projected pro forma revenue for the calendar year 2016 will more than double to reach or exceed approximately $90 million.