May 11, 2018 – OMERS Private Equity, the private equity investment arm of Ontario-headquartered OMERS, has entered into an agreement with New Mountain Capital to acquire Alexander Mann Solutions, a London-based talent acquisition and management services firm, for $1.1 billion.
Alexander Mann Solutions has industry expertise in a number of sectors, specifically retail and financial services; investment banking and professional services; technology and media; defense, engineering and business services; energy; and healthcare and life sciences. The company helps clients, typically large international businesses, to recruit and retain talent through multi-year contracts. Its small army of 4,000 talent acquisition and management experts deliver solutions in partnership with over 100 clients across 85 countries. Alexander Mann is led by founder and CEO Rosaleen Blair.
OMERS will support the Alexander Mann Solutions management team and employees in deepening and expanding its sectorial and geographic focus, and invest in technology to further develop its value proposition for both new and prospective clients. The private equity firm “will also support Alexander Mann Solutions in driving consolidation in what remains a large but still fragmented market,” said OMERS. Whether this means more acquisitions is unclear.
The proposed transaction remains subject to customary approvals by antitrust authorities and is expected to close at the end of next month.
“I would like to thank the team at New Mountain Capital,” said Ms. Blair. “Under their ownership Alexander Mann Solutions has cemented its position as a global leader in the talent acquisition marketplace and significantly enhanced its capabilities in North America.”
Ms. Blair said that OMERS’ ownership will prove invaluable for the recruitment and management services firm. “We are now in an era when the best businesses in the world recognize that people and culture are the new battlegrounds for organizations seeking competitive advantage,” she said. “With OMERS’ support we can strengthen our global total workforce proposition and critically, accelerate our digital transformation and investment in robotics and AI, creating an even more compelling proposition for our customers around the world.”
Microsoft Buys LinkedIn for $26.2 Billion
Microsoft Corp. acquired LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion. LinkedIn retained its distinct brand, culture and independence.
Martin le Huray, co-head of OMERS Private Equity in Europe, said he and his team are excited to be working with Ms. Blair and her team. “Alexander Mann Solutions is a trusted partner to global, market leading brands in the critical area of talent management,” he said. “We look forward to supporting Rosaleen and the team in extending Alexander Mann Solutions’ capabilities in the future, both organically and through acquisition.”
Mark Redman, executive vice president and OMERS global head of private equity, described Alexander Mann Solutions as a strong addition to its private equity portfolio, and that he expects it to create good value for members of the OMERS pension plan. “This investment is a perfect fit with our broader strategy of partnering with industry leaders poised for significant growth,” he said.
Related: Vaco Acquired by Private Equity Firm
Said Ms. Blair: “OMERS partnership approach, its substantial and unconstrained capital base and its experience of supporting businesses organically and through acquisition make it an ideal partner for Alexander Mann Solutions in this next stage of our journey.”
NM Rothschild & Sons Ltd. acted as financial advisers to OMERS Private Equity. Weil, Gotshal & Manges LLP provided legal counsel.
In March, Alexander Mann introduced its new consulting group, Talent Collective. Jeremy Tipper, a managing director at Talent Collective, said: “Alexander Mann Solutions is the recognized global leader in the RPO market, and while we have never shied away from a consultative approach – indeed it is something we live by – having a dedicated group enables greater clarity for clients, provides access to a team of expert professionals who are leaders in people management, and allows for greater options for businesses when it comes to their international talent solutions.”
Alexander Mann’s recent billion dollar acquisition announcement comes on the heels of online jobs portal Glassdoor agreeing to be purchased by Tokyo-based Recruit Holdings in an all-cash $1.2 billion deal.
Glassdoor, renowned for its employee reviews of businesses as well as salary information, will become “a distinct and separate part” of Recruiting Holdings’ expanding HR technology business segment. The sale is expected to close this summer. Regulatory approvals and closing conditions will also apply.
“Joining with Recruit allows Glassdoor to accelerate its innovation and growth to help job seekers find a job and company they love while also helping employers hire quality candidates,” said Robert Hohman, Glassdoor’s CEO and co-founder, who will continue to lead the company. “I look forward to leading Glassdoor through this exciting new chapter, and to exploring ways to use our combined resources and assets to benefit job seekers, employees and employers once the deal closes.”
AMN Healthcare Completes $195 Million in Acquisitions
AMN Healthcare Services, a provider of healthcare workforce solutions and staffing services, has completed two acquisitions: MedPartners, a national mid-revenue cycle firm, and two related brands in healthcare leadership solutions: executive search firm Phillips DiPisa and Leaders For Today.
Among its properties, Recruit Holdings owns the jobs search engine Indeed, which it acquired six years ago for a price, some estimate, to be close to $1.5 billion. Hisayuki Idekoba (Deko), chief operating officer and head of the technology segment for Recruit Holdings, said the company has no plans to integrate Glassdoor and Indeed, but that they might join forces on “specific challenges” down the line.
Related: Marlin Hawk Acquires Winter Circle
In addition, early last year Amsterdam-based human resource services provider Randstad Holding completed its acquisition of Monster. Under the terms of that deal, Randstad paid $3.40 per share in cash, or a total purchase price of approximately $429 million. Randstad intends to extend and build upon a comprehensive portfolio of HR services. Randstad, which reported $21.3 billion in revenues last year, currently has a presence in 39 countries and employs around 29,000 staff worldwide.
“In an era of massive technological change, employers are challenged to identify better ways to source and engage talent,” said Jacques van den Broek, chief executive officer of Randstad. “With its industry leading technology platform and easy to use digital, social and mobile solutions, Monster is a natural complement. 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.”
Some industry insiders, however, see it differently. “We believe Recruit Holdings passed over Monster in favor of Glassdoor’s more relevant and future-forward platform, which includes pay data and company reviews based on job-seekers’ perspectives,” said Dale Zupsansky, chief market strategist and editor-in-chief at Hunt Scanlon Media. “What Monster’s newly named CEO will do with the brand will unfold very quickly now, pushed into overdrive by this week’s stunning M&A news.”
Related: ADP Acquires WorkMarket
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Andrew W. Mitchell, Managing Editor – Hunt Scanlon Media