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Spherion Corp. (NYSE: SFN) struck a deal to buy Technisource Inc., a Little Rock AR-based information technology staffing and solutions company. Spherion will pay $140 million, including $120 million in cash and a $20 million note. The news comes less than two months after Spherion said it was buying Todays Staffing from CDI Corp. (NYSE: CDI).
Technisource has estimated 2007 revenue of $256 million and runs 34 branches. Staffing Industry Analysts ranked it as the 17th largest IT staffing and 26th largest IT services company, with total 2006 revenue of $279 million. Privately held, Technisource's majority investor is Charlesbank Capital Partners, a private equity firm with offices in Boston and New York.
"The company is an excellent strategic fit for us," Spherion CEO Roy Krause said in a statement. "When we combine our existing IT staffing business with Technisource, we will be a very significant provider of IT staffing services in North America. Additionally, with this acquisition our professional and managed services business will approximate 40% of total revenues creating a much more balanced mix of business."
Technisource said it will continue to operate under the Technisource brand. Spherion said it plans to merge Technisource's field and back-office operations into its own operations.
Michael Winwood, president of Technisource's consulting services division will lead the combined business, Technisource said. He will report to Spherion Executive VP and COO William Grubbs. Technisource Chairman and CEO Stephen Bova will serve as chairman during the integration process and leave the company by the middle of next year.
Spherion estimated the merger will be mostly complete by the middle of 2008 and add seven cents to nine cents per share in 2008.
Fort Lauderdale FL-based Spherion ranked as the ninth largest staffing company based on 2006 revenue of $1.93 billion.
Spherion on Sept. 20 announced it was buying clerical staffing firm Todays Staffing for $40 million. Todays had revenue of $150 million in the 12 months ending June 30 and has more than 60 locations in the U.S. and Canada.