Matchtech to acquire Networkers International
28 January 2015
Specialist engineering and professional services recruitment agency Matchtech Group has this morning [28 January] announced intentions to acquire telecoms and technology sector recruiter Networkers International.
Wed, 28 Jan 2015
Specialist engineering and professional services recruitment agency Matchtech Group has this morning [28 January] announced intentions to acquire telecoms and technology sector recruiter Networkers International.
This will allow Matchtech to significantly expand its international presence. A company spokesman told Recruiter international operations currently account for 2% of Matchtech’s net fee income but with this acquisition that will increase to 30%.
According to a statement from the company, Matchtech will pay a total consideration of £57.9m for the proposed acquisition by way of a court-sanctioned scheme of arrangement. The offer has been recommended by Networkers’ board.
Brian Wilkinson, current Matchtech executive chairman, is to become the new chief executive of the combined group.
Wilkinson, who previously held an executive board position at Randstad, has built a track record in operating internationally, primarily during his tenure at global recruitment giant Vedior, which Randstad bought in 2008.
Adrian Gunn, current CEO of Matchtech, has retired with immediate effect. He originally intended to retire next year.
Ric Piper, currently senior independent non-exec director of Matchtech, will assume the role of interim non-exec chairman until a permanent replacement is found.
Formed in 2000, Networkers grew through acquisition itself, acquiring the long-standing MSB International Group in 2006.
It is intended that a new management board will be formed once the acquisition is completed.
Along with Wilkinson, the board will include Tony Dyer as group chief financial officer and Keith Lewis as chief operating officer of the existing Matchtech businesses, along with the current Networkers’ CEO Spencer Manuel and Networkers’ CFO Jon Plassard.
Manuel and Plassard’s board titles are not yet known.
It is also intended that Roger Goodman, currently non-exec chairman of Networkers, will join the Matchtech Board as non-exec director.
In the statement, Wilkinson said: “We’re delighted to have reached agreement with the Networkers board of directors and are very excited with the prospects of the enlarged group… the addition of telecoms recruitment to our portfolio creates an even stronger specialist group.”
Both companies also this morning released trading updates.
Matchtech’s pre-close trading update for the six months ending 31 January 2015 says it “expects the results for the full year to be in line with its expectations”.
NFI in the first half of 2015 to 31 January 2015 was up 2% to £22.5m compared to the same period last year.
Matchtech’s engineering division accounted for £14.1m of that, a 6% increase on the previous year. The professional services division accounted for £8.4m, which was 5% less than the previous period.
Networkers International’s pre-close statement covering the year ended 31 December 2014 says it also “expects NFI and underlying business performance to be in line with management expectations”.
It said trading activity during the second half of the year was “much improved” compared to the first half.
This will allow Matchtech to significantly expand its international presence. A company spokesman told Recruiter international operations currently account for 2% of Matchtech’s net fee income but with this acquisition that will increase to 30%.
According to a statement from the company, Matchtech will pay a total consideration of £57.9m for the proposed acquisition by way of a court-sanctioned scheme of arrangement. The offer has been recommended by Networkers’ board.
Brian Wilkinson, current Matchtech executive chairman, is to become the new chief executive of the combined group.
Wilkinson, who previously held an executive board position at Randstad, has built a track record in operating internationally, primarily during his tenure at global recruitment giant Vedior, which Randstad bought in 2008.
Adrian Gunn, current CEO of Matchtech, has retired with immediate effect. He originally intended to retire next year.
Ric Piper, currently senior independent non-exec director of Matchtech, will assume the role of interim non-exec chairman until a permanent replacement is found.
Formed in 2000, Networkers grew through acquisition itself, acquiring the long-standing MSB International Group in 2006.
It is intended that a new management board will be formed once the acquisition is completed.
Along with Wilkinson, the board will include Tony Dyer as group chief financial officer and Keith Lewis as chief operating officer of the existing Matchtech businesses, along with the current Networkers’ CEO Spencer Manuel and Networkers’ CFO Jon Plassard.
Manuel and Plassard’s board titles are not yet known.
It is also intended that Roger Goodman, currently non-exec chairman of Networkers, will join the Matchtech Board as non-exec director.
In the statement, Wilkinson said: “We’re delighted to have reached agreement with the Networkers board of directors and are very excited with the prospects of the enlarged group… the addition of telecoms recruitment to our portfolio creates an even stronger specialist group.”
Both companies also this morning released trading updates.
Matchtech’s pre-close trading update for the six months ending 31 January 2015 says it “expects the results for the full year to be in line with its expectations”.
NFI in the first half of 2015 to 31 January 2015 was up 2% to £22.5m compared to the same period last year.
Matchtech’s engineering division accounted for £14.1m of that, a 6% increase on the previous year. The professional services division accounted for £8.4m, which was 5% less than the previous period.
Networkers International’s pre-close statement covering the year ended 31 December 2014 says it also “expects NFI and underlying business performance to be in line with management expectations”.
It said trading activity during the second half of the year was “much improved” compared to the first half.
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