HIRE Technologies Inc (CVE:HIRE) said it has entered an arm’s length agreement to acquire The Headhunters Recruitment Inc, a leading recruitment company with operations in multiple Canadian jurisdictions.
HIRE said the purchase price is four times the business earnings (EBITDA) for the trailing 12 month period ending on the closing date, of which $400,000 was paid by HIRE to the vendors on closing.
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The vendors have also agreed to pay certain predefined amounts to HIRE within the four years after the closing date if the target's financial results do not meet prescribed thresholds.
The entire leadership team of The Headhunters will also continue with the business following the acquisition.
The Headhunters specializes in full staffing solutions across a wide range of industries and business sectors including operations, executive search, engineering and sales.
"The corporate culture and values of The Headhunters and HIRE Technologies are closely aligned, which is key to the success of this partnership. It is important to us that our employees, clients, and candidates continue to feel supported and valued, in particular during these uncertain economic times. Joining the HIRE family means we can better serve businesses as well as candidates with additional integrated services and industry-leading technologies", Headhunters co-founder and president Danielle Bragge said in a statement.
Fellow co-founder and chief strategist Cam Macmillan added: "We are very excited about our new strategic partnership with HIRE Technologies. We anticipate greater opportunities for technological growth and geographic expansion, in particular, into Eastern Canada and the United States. The hiring landscape is rapidly changing, and this keeps us ahead of the curve as we join forces with HIRE."
"We are very excited to welcome The Headhunters to the HIRE network of brands. The ethos of our company is to invest in strong, smart leadership, and this is what we're gaining with this new partnership. The Headhunters is a recognized and trusted national brand, with a great team behind it and close synergies with our other brands. This acquisition allows us to expand our Canadian footprint and add more value to our clients and stakeholders", said HIRE Technologies chief executive Simon Dealy.
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