The HR company is looking to make the use of the brand’s substantial distribution channels to bolster its core HR service – at the price of $3.40 per share in cash. Monster will continue operating as it now is, under its own brand. The company at the time touted a newer business, The Monster Board, an online jobs listing. Younger, nimbler startups will garner the attentions of their bigger counterparts, while long-established companies such as Monster which have struggled to keep shareholders happy will seek the best possible outcome given the circumstances – and in this case, an exit to a much bigger corporation was seen as the best solution. It works out to $3.40 per share, which represents a 23 per cent premium on the firm’s closing price yesterday. While the global job board market grew at an estimated 11% in 2015, Monster’s revenue declined by 13%. The total purchase price would be approximately $429 million in enterprise value.
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John Nurthen, Executive Director Global Research for Staffing Industry Analysts said, “Randstad is continuing to execute its strategy of expanding its services across the wider workforce solutions ecosystem”. The acquisition is structured as an all-cash tender offer for all outstanding issued common stock of Monster followed by a merger in which remaining shares of Monster would be converted into the same US dollar per share consideration as in the tender offer. The deal is expected to close in Q4 2016.
Financially Compelling: The transaction is expected to be immediately accretive to Randstad earnings per share.
Randstad will finance the deal and through existing credit facilities, adding it will now reduce the pace of its mergers & acquisitions (M&A) activity in the medium term. Randstad Holding nv is listed on the Euronext Amsterdam, where options for stocks in Randstad are also traded.
In India, Randstad has 28 branches, about 60,000 contract employees and has placed more than 500,000 people over the past 24 years, according to information available on its website.
Monster Worldwide (NYSE:MWW) opened at 2.64 on Monday. For more than 20 years, Monster has helped people improve their lives with better jobs, and employers find the best talent.
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This past quarter Monster, which is active in some 40 countries, ended with a turnover of almost 151 million dollars.
