Technology recruitment specialist MSB International has revealed that it is in talks with a potential suitor, almost certainly bigger rival Quantica.

Sources close to the situation have told Recruiter that the two companies have talked. MSB is in the process of consulting with
its major shareholders, some of whom are also major Quantica shareholders.
MSB’s shares have risen sharply in recent days. It is now valued at just over £10m, and this is the likely price tag if Quantica were
to take it over.

Most of MSB’s board, including chief executive Andrew Zielinski, would be likely to have to leave the company as there would be
no position for them in the enlarged Quantica group, the sources suggest. An announcement is likely in the next few days.

MSB reported a loss for the year to January, but said trading in the first two months of its current year had picked up.
MSB said it had suffered from “inflexibility” in the final quarter. “A temporary downturn in sales activity could not quickly be countered by an equivalent reduction in the sales cost base,” said chairman Paul Davies.

Revenue for the year was up 3.7% at £95.7m. But the costs of restructuring and making several redundancies forced it into the red.
The firm closed its Dublin office and scaled back its German operation to reflect market weakness in the region.  It reported a pre-tax loss of £558,000, against a profit of £997,000 a year earlier.

Davies added that MSB was already benefiting from the restructuring action it has taken.
MSB declined to comment on the takeover prospects.
MSB’s contract to supply staff for Unisys was extended on October for another two years.