RANDSTAD HLDGS NV EUR0.10 (OTCMKTS:RANJF) has revealed its plan to acquire Monster Worldwide, Inc. (NYSE:MWW) through a deal valued at $429 million.
Randstad Holdings which is the second largest staffing firm in the world will acquire Monster Worldwide so that it can strengthen its position in the online recruiting business. Randstad believes that the acquisition is ideal for future performance because Monster will bring a lot of experience on board. The firm has been in the digital recruiting business since 1994 and has managed to survive the changing landscape thanks to a strong and flexible business strategy. It currently provides its staffing services in more than 40 countries.
Monster Worldwide has recently been facing a lot of competition from relatively younger and creative rivals. Recruitment agencies have also shifted to networking sites such as the social platform provided by LinkedIn Corp (NYSE:LNKD). Once the acquisition deal is completed, Monster will be delisted from the New York Stock Exchange. It will continue its operations under the Randstad umbrella though it will operate as a separate entity. Randstad has an array of different job search and placement services such as the walk-in job placement branches. It currently ranks second in the industry after ADECCO GROUP AG CHF1 (REGD) (OTCMKTS:AHEXF).
Randstad’s performance in the US is not as great and it is dwarfed by ManpowerGroup Inc. (NYSE:MAN). The former’s global revenue in 2015 was €19.2 billion but North America contributed only €4.7 billion out of the total revenue. The firm recently started to embrace deals as one of the strategies that it can use deals to penetrate deeper into the US market. The acquisition of Monster Worldwide will allow the two firms to combine their resources so that they will be in a better position to face their rivals.
The deal will allow them to survive in the highly competitive industry and perhaps even take up the top position. Prior to the Monster Worldwide acquisition, Randstad previously acquired RiseSmart for $100 million.