August 17, 2021 – HIRE Technologies Inc., a company focused on modernizing and digitizing human resources solutions, has entered into a definitive agreement to acquire Montreal-based Leaders and Co. Leaders is an executive search firm with clients across Canada, strong national and international alliances, and a diversity and indigenous recruitment practice, HIRE said. “The partners at Leaders have created a successful practice based on deep research and exceptional customer service,” said Simon Dealy, HIRE’s CEO. “I am convinced that they will contribute long-term value to HIRE as well as to our clients and existing portfolio companies. We also look forward to collaborating closely with the other Leaders international affiliates in Vancouver, Edmonton and Calgary and its international network through Penrhyn International.”
“It is imperative that executive search firms operate with a view to broaden their networks to remain competitive in our industry,” said Richard Joly, managing partner of Leaders. “First with our national alliances in 2018, then with our international network at Penrhyn International, and now with our partnership at HIRE, our team of 17 professionals can continue to grow their practices and leverage proprietary tools, including the Leaders Report, all while being supported by HIRE’s shared services.”
The purchase price for the acquisition is payable as to $4.4 million in cash, 3,559,871 common shares of the company at a deemed price of $0.309 per share, and $1 million in an earn-out payable over three years in cash subject to meeting prescribed financial thresholds. The entire leadership team of Leaders, Mr. Joly, Cynthia Labonté, Laurie Sterritt, Yanouk Poirier and Philippe Burton, will be continuing in the business following the acquisition.
- The proposed addition of a high margin premier executive search firm to the HIRE network will enhance HIRE’s geographic reach into Québec and boost its EBITDA performance.
- For the fiscal year ending Jan. 31, Leaders recorded $3.9 million in revenue and $1 million in EBITDA. For the trailing 12 months ending March 31, EBITDA was $1.3 million.
- HIRE was provided with a term-loan facility of $5 million from FirePower Capital to continue its acquisition strategy.
- HIRE concurrently announces a non-brokered private placement to directly support the acquisition in an amount of up to $3 million.
Acquisitions and consolidations continue to make news in the recruiting industry, with a number of notable purchases in recent months. Here is a sampling from the Hunt Scanlon Media archives:
Orlando, FL-headquartered healthcare-focused search firm Kirby Bates Associates (KBA) and Tyler & Company have merged business operations. The unified organization will operate under the Kirby Bates Associates brand. “Tyler & Company offers an exciting opportunity for Kirby Bates to strengthen its service and scope in healthcare executive leadership,” said Melissa A. Fitzpatrick, president of Kirby Bates Associates and Tyler & Company. “With its range of high-profile clients and service expertise, Tyler & Company’s complementary offerings are highly aligned to Kirby Bates’ strategy to lead the market by expanding services throughout the C-suite and across the continuum of care.”
Executive search firm ZRG has acquired Walking the Talk, a consulting and advisory firm focused on culture transformation. Hunt Scanlon Ventures facilitated the introduction and transaction between both organizations. Walking the Talk, headquartered in Amsterdam, specializes in enhancing performance results by aligning culture with strategy. Since the company was established 11 years ago, culture has landed firmly on the agenda of most executive teams and boards of directors.
A group of private investors led by majority partner CTR Group, a Virginia-based, family-owned employment services firm, has completed its acquisition of RM Nephew & Associates, an executive search firm headquartered in Boston, MA. Hunt Scanlon Ventures facilitated the introduction and the transaction. RM Nephew and Associates, with offices in Boston and New York, offers partnership-driven solutions to business leadership and recruitment challenges for a premier list of clients, primarily in the healthcare, technology, and professional services sectors.
Riviera Partners, a recruitment provider specializing in C-level engineering, product and design leader placements, has acquired Arete Partners. The Arete Partners team will form the foundation of Riviera Ventures and build upon its focus on Seed-to-B stage VC-backed startups. Eóin O’ Toole, co-founder and CEO of Arete Partners, will lead the new Riviera Ventures unit. Over the course of the past six years, Arete Partners has placed executive talent for Seed-to-B stage companies with “an understanding that the earliest leadership hires are of critical importance if startups are to reach their full potential,” Riviera Partners said in a statement.
Caldwell has signed an agreement to acquire IQTalent Partners. “For 50 years, Caldwell has been connecting clients with transformational talent. With this merger, we are setting our sights on transforming the world of talent,” said John Wallace, chief executive officer. “IQTalent Partners’ unique service model and innovative use of technology, paired with Caldwell’s expertise, network and resources will allow us to serve our clients in a more integrated fashion and allow us to have a greater impact on their long-term success, which remains our primary mandate.” Founded in 2009, IQTalent Partners provides talent acquisition solutions to 300 corporations from Fortune 500s to startups across a wide range of industries and functions throughout North America, Europe, Australia, Asia, and South America.
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media