Monster.com, a global leader in connecting people and jobs, and Randstad Holding, a leading HR services provider recently announced the signing of a definite agreement under which the latter will acquire the former. Under the merger terms, Randstad will pay a purchase price of approximately $426 million, or $3.40 per share in cash.
Monster.com began exploring the idea of a sale in 2012. The recession of 2008 took its toll on the recruiting website. The company witnessed its value plummet. In 2006, was still valued at more than $7.5 billion.
Randstad intends to build one of the world’s most comprehensive portfolios of human resources services by leveraging Monster’s numerous distribution channels to bring together two different yet complementary parts of the wider recruiting industry. Monster will, however, continue operating as an independent and separate entity under the same name.
Based out in Diemen, the Netherlands, Randstad was founded in 1960 by Frits Goldschmeding. It is a multinational human resource consulting firm. The company is a provider of outsourcing, staffing, consulting and workforce solutions within the areas of engineering, finance, healthcare, human resources, IT, legal, sales and marketing. By 2015, Randstad had approximately 4,473 in-house locations and branches and 29,750 corporate employees in 39 countries around the globe. The organization generated revenues totaling $21.2 billion in 2015 alone.
Monster Worldwide, Inc., a global leader in connecting people to the right jobs, was founded in 1994. and offers services in more than 40 countries. Monster is one of the oldest and largest online job search resources. Their subsidiary, Monster India (headquartered in Hyderabad) began operations in 2001 and has a presence in 11 other Indian cities- Cochin, Chandigarh, Baroda, Ahmedabad, Kolkata, Pune, Chennai, Bengaluru, Delhi, and Mumbai.
During the signing of the merger agreement, Randstad CEO Jacques van den Broek noted that in an era of massive technological changes, employers are challenged to come up with better ways to engage and source talent. He went on further to acknowledge that Monster was a natural complement to Randstad due to its easy to use mobile, social, and digital solutions and industry leading technology platform and concluded by stating that the transaction was aligned with their Tech and Touch growth strategy and reflected their commitment to bringing labor demand and supply together in order to better connect the right jobs to the right people.
Financial and strategic benefits of the acquisition
Monster and Randstad share a vision for the global job industry that is rapidly transforming due to technology advances. Therefore, this transaction is meant to accelerate their ability to develop innovative and new technologies that deliver value to employers and job seekers by bringing demand, supply, and labor closer together.
Randstad continues to enhance its business model by placing more than 2 million people annually through its network of client-dedicated services and over 4,000 branches. With Monster’s leading recruiting platforms, technologies, and media which connect jobs to people in more than 40 countries now coming on board, Randstad intends to expand its services to offer both candidates and clients tools for increased engagement and efficiency thus connecting more people to more opportunities.
This is the second major professional services acquisition in recent months. In June, Microsoft bought Linkedin for $26.2 billion.
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