Under the terms of the merger agreement, Randstad will pay $3.40 per share in cash. The consideration represents a 22.7% premium to Monster’s closing stock price on August 8, 2016. This is at a 30.1% premium to the 90 day volume weighted average stock price.
Randstad was founded in 1960 by Frits Goldschmeding. It is headquartered in Diemen, the Netherlands. In 2015, Randstad had approximately 29,750 corporate employees and around 4,473 branches and inhouse locations in 39 countries around the world. Randstad generated revenue of $21.2 Bn (€ 19.2 Bn) in 2015.
Jacques van den Broek, CEO of Randstad 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 labour supply and demand closer together to better connect the right people to the right jobs. We look forward to welcoming the Monster team and working together to shape the evolving global job industry.”
Randstad specialises in solutions in the field of flexible work and human resources services. Their services range from regular temporary staffing and permanent placements to Inhouse Services, Professionals, Search & Selection, outplacement, and HR Solutions.
On the other hand, Monster Worldwide, Inc. founded in 1994 is a global leader in connecting people to jobs. The company offers services in more than 40 countries.
Monster India started its operations in 2001. Headquartered in Hyderabad, the company has a presence in 11 other cities of India viz., Mumbai, Delhi, Bengaluru, Chennai, Pune, Kolkata, Ahmedabad, Baroda, Chandigarh, and Cochin.
Tim Yates, CEO of Monster said, “Together with Randstad, Monster will be better positioned to fulfill our core mission, and our employees will benefit from becoming part of a larger, more diversified company. Equally important, this transaction offers immediate value to our shareholders. We are excited to join and be supported by Randstad, as we continue to build the best recruiting media, technologies, and platforms. We look forward to working with the Randstad team to ensure a smooth transition.”
By leveraging Monster’s multiple distribution channels to bridge two different but complementary parts of the extended recruiting industry, Randstad intends to build the world’s most comprehensive portfolio of HR services. Monster will continue operating as a separate and independent entity under the Monster name.
The acquisition is structured as an all-cash tender offer for all outstanding issued common stock of Monster. This is followed by a merger in which remaining shares of Monster would be converted into the same US dollar per share consideration as in the tender offer. The deal is expected to be completed in the fourth quarter of 2016, subject to regulatory approvals.
Wells Fargo Securities is serving as exclusive financial advisor to Randstad and Jones Day is serving as legal counsel. Evercore Group L.L.C. is serving as exclusive financial advisor to Monster and Dechert LLP is serving as legal counsel.
Prior to this, on June 2016, Monster”s competitor LinkedIn was acquired by Microsoft for $196 per share in an all-cash transaction valued at $26.2 Bn, inclusive of LinkedIn’s net cash.