Japan-based staffing firm Outsourcing Inc. (2427: JP) announced that, through its subsidiary American Engineering Corporation, it will acquire California Pacific Technical Services LLC.

Financial details were not disclosed.

American Engineering Corporation is part of the Domestic Service Operations Outsourcing Business segment of Outsourcing. It provides a wide range of services such as repair and maintenance services for buildings and equipment, as well as air-conditioning and electrical work construction services, primarily on US military facilities throughout Japan.

California Pacific Technical Services is a market leader in IT infrastructure business in the US island territory of Guam and its surrounding areas, building IT and light electrical equipment systems for private companies centered on the US military, US local governments, and the telecommunications industry.

According to Outsourcing, there are only a few small companies that can provide IT infrastructure services in this region.

Through this acquisition, Outsourcing stated that it can expect synergies that will contribute to the expansion of the Public Works Outsourcing Business, which is a primary measure of the growth strategy in the company’s Medium-Term Management Plan.

“With CalPac joining the Group, AEC will be able to smoothly enter the IT / light electrical equipment systems market and expand its business in Guam,” Outsourcing stated. “Further, we will continue to both expand and stabilise group business through expansion into the Pacific Rim, which by extension brings into view full-scale entry into the significantly larger market on the U.S. mainland, accelerating growth of business for US military facilities.”

Through this acquisition of equity interest, California Pacific is expected to become a consolidated subsidiary of the company in Q2 2021. The impact of the acquisition on consolidated financial results for FY12/21 is negligible, the company stated.

Outsourcing reported revenue of JPY 366.7 billion (USD 3.47 billion), up 1.5% over the year, for the full year ended 31 December 2020.

The company has recently been on an acquisition spree. In November, Outsourcing acquired Irish recruitment firm Cpl Resources for approximately €318 million. On 19 January it was reported that Outsourcing acquired S.S. Sangyo Co. Ltd, a Japanese firm involved in the worker dispatch business, outsourced contracting business and paid job placements. Furthermore, on 28 January, the group announced that it will acquire Select Staff Group and HorizonOne Recruitment.

According to SIA’s Largest Staffing Firms in Japan and Market Overview report, Outsourcing is the 3rd largest staffing firm in Japan.