ET BureauMonster Worldwide, one of the oldest job portals, is being acquired by Amsterdam-based human resource services provider Randstad Holding for a total purchase price of around $429 million in cash.
As per the deal, Randstad is paying Monster $3.40 per share, a 22.7% premium over its closing price of $2.77 earlier today. This is however way below from the NYSE-listed job portal's heydays in 2000 - when it traded as high as $91.
Monster will however continue to operate as a separate and independent entity under the same name. The deal is expected to close in Q4 2016.
"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 "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"
"Joining Randstad provides a unique opportunity to accelerate our ability to connect more people to more jobs," said Tim Yates, CEO of Monster. "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."
Monster, which at one point of time was a significant player in the online job recruitment segment, has been struggling for the past few years. The company posted a net loss of $124.2 million on revenues of $150.9 million for the second quarter ended June 30, 2016.
Monster India
Monster started its India operations in 2001 and is headquartered in Hyderabad, with presence in 11 other Indian cities including Mumbai, Delhi, Bengaluru, Chennai, Pune, Kolkata, Ahmedabad, Baroda, Chandigarh and Cochin.
In India, it competes with InfoEdge's Naukri.com, Times Business Solutions' TimesJobs*, HT Media's Shine.com and professional networking site LinkedIn that was recently acquired by Microsoft for $26.2 billion.
As per the deal, Randstad is paying Monster $3.40 per share, a 22.7% premium over its closing price of $2.77 earlier today. This is however way below from the NYSE-listed job portal's heydays in 2000 - when it traded as high as $91.
Randstad said that this acquisition will enable them to expand its services to offer both clients and candidates tools for "increased efficiency and engagement". It plans to leverage Monster's multiple distribution channels to build a comprehensive portfolio of HR services.
Monster will however continue to operate as a separate and independent entity under the same name. The deal is expected to close in Q4 2016.
"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 "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"
"Joining Randstad provides a unique opportunity to accelerate our ability to connect more people to more jobs," said Tim Yates, CEO of Monster. "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."
Discover the stories of your interest
Monster, which at one point of time was a significant player in the online job recruitment segment, has been struggling for the past few years. The company posted a net loss of $124.2 million on revenues of $150.9 million for the second quarter ended June 30, 2016.
Monster India
Monster started its India operations in 2001 and is headquartered in Hyderabad, with presence in 11 other Indian cities including Mumbai, Delhi, Bengaluru, Chennai, Pune, Kolkata, Ahmedabad, Baroda, Chandigarh and Cochin.
In India, it competes with InfoEdge's Naukri.com, Times Business Solutions' TimesJobs*, HT Media's Shine.com and professional networking site LinkedIn that was recently acquired by Microsoft for $26.2 billion.
Get Unlimited Access to The Economic Times
