HIRE Technologies Acquires The Headhunters
2020-09-02 09:03 ET - News Release
- HIRE expands its geographic and industry reach through the acquisition of an established staffing business headquartered in Western Canada.
- The Headhunters generated $4.1 million in revenue for the twelve months ended December 31, 2019.
- The Headhunters management team will add key leadership to HIRE's other subsidiaries, bringing a proven, transferable knowledge base that can be leveraged across HIRE's network to accelerate organic growth across the group of companies.
Toronto, Ontario--(Newsfile Corp. - September 2, 2020) - HIRE Technologies Inc. (TSXV: HIRE) (the "Company" or "HIRE") announces that, on September 1, 2020 (the "Closing Date"), it entered into an arm's length agreement with the shareholders (the "Vendors") of The Headhunters Recruitment Inc. ("The Headhunters") to acquire all of the issued and outstanding shares of The Headhunters. The purchase price is 4.0X the business EBITDA1 for the trailing twelve month period ending on the second anniversary of the Closing Date (the "Purchase Price") of which $400,000, subject to closing working capital adjustment, was paid by HIRE to the Vendors on closing.
The Headhunters is a leading recruitment company with operations in multiple Canadian jurisdictions, specializing in full staffing solutions across a wide range of industries and business sectors including operations, executive search, engineering and sales.
"We are very excited to welcome The Headhunters to the HIRE network of brands. The ethos of our company is to invest in strong, smart leadership, and this is what we're gaining with this new partnership," commented Simon Dealy, Chief Executive Officer of HIRE Technologies. "The Headhunters is a recognized and trusted national brand, with a great team behind it and close synergies with our other brands. This acquisition allows us to expand our Canadian footprint and add more value to our clients and stakeholders."
Cam Macmillan, Co-founder and Chief Strategist of The Headhunters, added, "We are very excited about our new strategic partnership with HIRE Technologies. We anticipate greater opportunities for technological growth and geographic expansion, in particular, into Eastern Canada and the United States. The hiring landscape is rapidly changing, and this keeps us ahead of the curve as we join forces with HIRE."
Danielle Bragge, Co-founder and President of The Headhunters, added, "The corporate culture and values of The Headhunters and HIRE Technologies are closely aligned, which is key to the success of this partnership. It is important to us that our employees, clients, and candidates continue to feel supported and valued, in particular during these uncertain economic times. Joining the HIRE family means we can better serve businesses as well as candidates with additional integrated services and industry-leading technologies."
The entire leadership team of The Headhunters will be continuing in the business following the acquisition.
Post-Closing Adjustments
The Vendors have agreed to pay certain predefined amounts to HIRE within the four years after the Closing Date if the target's financial results do not meet prescribed thresholds. Each Vendor may, subject to applicable laws and stock exchange policies, elect to receive up to 50% of the future installment of the purchase price in shares of HIRE (each a "Consideration Share"), not to exceed an aggregate of 1,910,000 Consideration Shares, at a deemed price equal to the greater of: (i) the 10-trading day volume weighted average price of HIRE's common shares for the period ending on the second anniversary of the Closing Date; and (ii) the Discounted Market Price, as such term is defined in the policies of the TSX Venture Exchange, of HIRE's common shares on the last trading day immediately prior to the Closing Date. Each of the Vendors electing to receive Consideration Shares shall, as a condition to the issue of such Consideration Shares to that Vendor, enter into a lock-up agreement restricting the resale of their Consideration Shares for a period of 24 months following the issuance of the Consideration Shares.
About HIRE Technologies Inc.
HIRE is building a network of staffing, IT, and HR consulting firms. We help our partners navigate the changing world through growth solutions, focusing on digital transformation. Our partnership model emphasizes the identity and independence of our brands and provides the resources, support, and expertise to take their businesses further. We offer valuable advice and insights to our clients while delivering innovative solutions, enhancing their HR teams, and connecting them with the best people for their business.
About The Headhunters
The Headhunters is a leading recruitment firm. The Headhunters uncovers top candidates through dedicated headhunting and sourcing. With a focus on finding the right fit, The Headhunters helps clients grow their businesses by building successful teams. The Headhunters primary areas of focus are accounting & finance, general management, office personnel, human resources, sales & marketing, customer service, operations & supply chain, engineering, and IT.
- EBITDA is defined as net income adjusted to exclude interest, taxes, depreciation, and amortization.
For further information, please contact:
HIRE Technologies Inc.
Simon Dealy, Chief Executive Officer
Phone: (647) 264-9196
Email: sdealy@hire.company
Web: hire.company