StepStone has announced the expansion of its operations in China through a binding agreement to acquire LEVEL4 Performance Consulting, a Hong Kong company, and its subsidiary in mainland China, collectively known as LEVEL4.

The acquisition will enable StepStone to accelerate its penetration of the rapidly expanding Chinese talent management market. Existing StepStone customers in China include Ford, Intertek, KPMG and SGS.

LEVEL4 focuses on talent management consultancy services and the sale and implementation of talent solutions. It has offices in Hong Kong, Shanghai and Guangzhou.

StepStone will acquire a majority interest with an option to acquire the minority in 2011. LEVEL4 will be renamed StepStone China. Roy Fung, the current majority shareholder, will remain with the business and take on the role of president, StepStone Greater China.

Roy Fung said: "We are very proud to become part of StepStone. The Chinese economy is growing very quickly and employment is rapidly expanding. Finding, developing and retaining talent is a major challenge. We believe that our experience in the Chinese market and StepStone’s talent management products is a winning combination. The opportunities are enormous and we anticipate a successful future for StepStone China."

Colin Tenwick, StepStone chief executive, said: "Recent Economist Intelligence Unit research from StepStone indicates that recruitment is becoming tougher globally but Asia is the market where recruitment and retention difficulties are acute, increasing the need for organisations to adopt a robust recruitment and talent management strategy. I am very pleased to welcome Roy and his team to StepStone. They become part of an expanding Asia Pacific operation that will accelerate the delivery of StepStone products and services to this important market."