Hays plc Acquires 80% of Veredus Corp.
Hays plc (“Hays”), a global specialist recruitment company, has acquired 80% of Veredus Corp. (“Veredus”), for an initial consideration of approximately $44.0m (c.£28m), on a cash free / debt free basis. The remaining 20% of equity in Veredus will be retained by the selling shareholders, all of whom will continue in their senior leadership roles within the Hays USA business.
The cash consideration will be fully funded from existing debt facilities, and the acquisition will materially accelerate the growth and diversification of the Hays business in what is one of the most attractive specialist recruitment markets in the world.
Hays has the option to acquire the remaining 20% from the selling shareholders. This option is first available for exercise in March 2018, at a pre-determined multiple of earnings, and is subject to a cap.
Commenting on the transaction, Alistair Cox, Hays CEO, said:
“I am delighted to announce this important transaction for Hays. Since entering the US market in late 2010, the Hays business has rapidly expanded, providing specialist recruitment services in the Life Sciences and Oil & Gas sectors, with offices in New York and Houston. Veredus’ clear, market-leading focus on IT Contracting and their established platform across the South East and Mid-West, alongside deep existing client relationships across a range of sectors makes it highly complementary to our existing North American and global operations.
The acquisition of Veredus provides the ideal platform for us to import our complementary recruiting expertise and relationships from across the Group, driving diversified growth and better serving our many clients for whom the USA is a key market. By adding the existing market-leading business and quality leadership team that Veredus brings, we enter the next phase for Hays in the USA with a clear plan to significantly accelerate our growth trajectory in this key market.
I welcome the entire Veredus team to Hays and look forward to a long and successful shared future.”
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