The online recruitment platform, Monster, came under the lime light today as it is being acquired by Randstad Holding NV. The acquisition agreement, worth $429 million, marks the end of the road for a prominent player in the industry.
As per the terms of the acquisition deal, the Netherland based HR consulting firm has agreed to pay $3.40 per share in cash to Monster, which is almost 23% higher than the company’s closing share price on Monday. While the online recruiting platform will continue to function as a separate entity, the move will help Randstad boost its presence in the US market.
“In an era of massive technological change, employers are challenged to identify better ways to source and engage talent," Randstad CEO, Jacques van den Broek, said. “With its industry leading technology platform and easy to use digital, social and mobile solutions, Monster is a natural complement to Randstad. The transaction is aligned with our Tech and Touch growth strategy and reflects our commitment to bringing labor supply and demand closer together to better connect the right people to the right jobs.”
Randstad is considered to be one the biggest HR firms in the world, with almost 30,000 employees; it reported approximately $20 billion in revenue last year. The company has prior experience of acquisitions, with a few deals to its credit. It acquired rival Vedior for almost $3.3 billion in 2007. The company also bought Italy’s Obiettivo Lavoro for $113 million in May this year.
Monster went public in December 1996, when it was operating as an advertising agency called TMP Worldwide. When The Monster Board (TMB) merged with Online Career Center (OCC) in 1999, a new player emerged in the online recruitment sector. In 2000, the company’s stock experienced its peak at $91 per share, which has declined ever since.
Monster, which was once considered as a significant market player in the online job industry, was struggling to retain its original position over the past few years. The online recruitment platform reported net loss of $124.2 million from continuing operations during the second-quarter of 2016.
Industry pundits believe that it was a wise move on Monster’s behalf to say yes to the acquisition at a time when it has been struggling to keep up with its rivals. The online recruitment platform is currently available in 40 countries, and has an estimated 50,000 employees.
“Joining Randstad provides a unique opportunity to accelerate our ability to connect more people to more jobs," said Monster CEO, Tim Yates. "Monster will be better positioned to fulfill our core mission, and our employees will benefit from becoming part of a larger, more diversified company.”
While Monster primarily generated revenues from its website, Randstad plans to focus more on recruitment centers. The latter currently has 4,500 branches all over the world and it claims to have helped around two million people in finding jobs. Moreover, the acquisition deal will add an online component to Randstad, so it can expand its services.