Randstad will pay $14 a share for SFN, a 53 percent premium to the Fort Lauderdale, Florida-based company’s closing price on July 19. The deal will be financed through existing credit lines and is expected to close in September, according to a company statement released late yesterday.
After the deal, Randstad will be the third-largest provider of human-resources services in North America, doubling its presence in the U.S., according to the statement. The combination will result in annual pretax savings of $30 million.
“The acquisition strategically fits very well as the companies have a comparable service offering in North America and a complementary geographic coverage,” Gert Steens, an Amsterdam-based analyst at SNS Securities, said in a note today. He has a “buy” recommendation on the stock.
Randstad rose 55 cents, or 1.8 percent, to 30.45 at 10:17 a.m. in Amsterdam.
The company is being advised by Bank of America Merrill Lynch, and SFN is being advised by Foros LLC. Randstad also agreed to a new credit facility at a minimum size of 1.05 billion euros ($1.5 billion), according to the statement, which will become available when its current facility has been canceled.
The Dutch company also reported organic revenue growth per working day of 11 percent in the second quarter, slowing from 15 percent in the first quarter.
To contact the editor responsible for this story: Jennifer Sondag at firstname.lastname@example.org