Please pardon the quick news blurb, but we wanted to make sure that everyone knew about this as soon as possible.
Randstad is buying another major staffing agency, SFN Group, for $770 million.
Randstad is based in Holland, and is the second-largest staffing organization in the world.
The U.S. and Canada-based SFN Group, formerly the Spherion Corp., inked a multi-million dollar deal to sell out to the Dutch corporation, which will make Randstad the third-largest human resources provider in North America, according to reports.
The announcement was made on July 20.
SFN President Roy G. Krause said in a press release, “This transaction creates immediate shareholder value. The executive management and I are confident that the combination of our two companies is a strong strategic fit that will not only deliver expanded service offerings for our clients in North America, but also creates opportunities to service them on a global basis.”
The deal has Randstad buying all SFN Group’s outstanding shares, at $14/share, which will come to roughly $771 million dollars.
Perhaps riding on the glory of the Randstad buy, the morning after the announcement, SFN Group’s stocks soared at an “unusually high volume.” Trading was up 51.6%.
The companies will combine more than 5,000 employees, and industry experts expect Randstad’s U.S. presence to double.
What do you think about this? Are developments like this good or bad for the industry?