The Amsterdam based company acquired Monster for $429 million in cashMonster Worldwide, one of the first veterans from the first dot-com boom has been acquired in a deal working out to $3.40 per share in cash and is a premium on Monster’s share price at closing on Monday 10th October 2016 of $262 million – a far cry from back in 2000 when Monster had a share price of over $91 and a market cap of nearly $8 billion. Even in 2007, when its stock was around $51, Monster was valued as high as $5.5 billion.
Monster will keep its brand and operate as a separate entity, but the bigger plan is to consolidate different aspects of the recruitment and employment industry for better economies of scale and a “portfolio of HR services,” in the words of Randstad.
“In an era of massive technological change, employers are challenged to identify better ways to source and engage talent,” said Jacques van den Broek, CEO of Randstad, in a statement. “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 labor 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.”
Monster is currently active in 40 countries and employs approximately 50,000 employees according to its Q1 report. Although its main focus is its website, Randstad has a focus on recruitment centres, with 4500 active branches and has placed around 2 million people in jobs. This asset will now give them an online component to expand the business.
“Joining Randstad provides a unique opportunity to accelerate our ability to connect more people to more jobs,” said Tim Yates, CEO of Monster, in a statement. “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.”
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