June 8, 2016 – ManpowerGroup has signed a purchase agreement with Ciber, Inc., a global information technology consulting, services and outsourcing company, to acquire its Dutch business. Transaction terms include a $25 million cash purchase price, which is subject to a purchase price adjustment six months after closing with respect to the retention of certain Ciber Netherlands customers, as well as an escrow amount of $5 million of the purchase price.
The transaction strengthens ManpowerGroup’s IT recruiting capabilities in the Netherlands, complementing the organic growth of its Experis brand. ManpowerGroup launched Experis in 2011, combining the company’s three North America professional talent and solutions organizations — Manpower Professional, Comsys and Jefferson Wells — into the brand. Experis operates in the engineering, IT and finance sector verticals.
Ciber Netherlands has been operational for over 10 years and its 400 employees are expected to transition over to ManpowerGroup when the transaction closes in the next week to 10 days.
“This acquisition will further accelerate our strategy of shifting our business mix towards higher value professional services in the Netherlands,” said Jilko Andringa, ManpowerGroup Northern Europe president. He said that rapid technological advances mean that IT professionals are more in-demand than ever. “This move allows us to broaden our offerings and bring even more IT talent to our clients so they can achieve their business objectives in this rapidly changing competitive environment.”
ManpowerGroup recently posted first quarter revenues of $4.6 billion, a one percent increase from revenues of $4.5 billion a year ago. Financial results in the quarter were impacted by the stronger U.S. dollar relative to several foreign currencies compared to the prior year period. On a constant currency basis, revenues increased five percent and earnings per share increased 22 percent.
Contributed by Dale M. Zupsansky, Managing Editor, Hunt Scanlon Media