- HIRE expands its geographic and industry reach through the acquisition of an established staffing business headquartered in Western Canada.
- The Headhunters generated $4.1 million in revenue for the twelve months ended December 31, 2019.
- The Headhunters management team will add key leadership to HIRE’s other subsidiaries, bringing a proven, transferable knowledge base that can be leveraged across HIRE’s network to accelerate organic growth across the group of companies.
Toronto, Ontario–(Newsfile Corp. – September 2, 2020) – HIRE Technologies Inc. (TSXV: HIRE) (the “Company” or “HIRE“) announces that, on September 1, 2020 (the “Closing Date“), it entered into an arm’s length agreement with the shareholders (the “Vendors“) of The Headhunters Recruitment Inc. (“The Headhunters“) to acquire all of the issued and outstanding shares of The Headhunters. The purchase price is 4.0X the business EBITDA1 for the trailing twelve month period ending on the second anniversary of the Closing Date (the “Purchase Price“) of which $400,000, subject to closing working capital adjustment, was paid by HIRE to the Vendors on closing.
The Headhunters is a leading recruitment company with operations in multiple Canadian jurisdictions, specializing in full staffing solutions across a wide range of industries and business sectors including operations, executive search, engineering and sales.
“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,” commented Simon Dealy, Chief Executive Officer of HIRE Technologies. “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.”
Cam Macmillan, Co-founder and Chief Strategist of The Headhunters, 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.”
Danielle Bragge, Co-founder and President of The Headhunters, added, “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.”
The entire leadership team of The Headhunters will be continuing in the business following the acquisition.
The Vendors have 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. Each Vendor may, subject to applicable laws and stock exchange policies, elect to receive up to 50% of the future installment of the purchase price in shares of HIRE (each a “Consideration Share“), not to exceed an aggregate of 1,910,000 Consideration Shares, at a deemed price equal to the greater of: (i) the 10-trading day volume weighted average price of HIRE’s common shares for the period ending on the second anniversary of the Closing Date; and (ii) the Discounted Market Price, as such term is defined in the policies of the TSX Venture Exchange, of HIRE’s common shares on the last trading day immediately prior to the Closing Date. Each of the Vendors electing to receive Consideration Shares shall, as a condition to the issue of such Consideration Shares to that Vendor, enter into a lock-up agreement restricting the resale of their Consideration Shares for a period of 24 months following the issuance of the Consideration Shares.
About HIRE Technologies Inc.
HIRE is building a network of staffing, IT, and HR consulting firms. We help our partners navigate the changing world through growth solutions, focusing on digital transformation. Our partnership model emphasizes the identity and independence of our brands and provides the resources, support, and expertise to take their businesses further. We offer valuable advice and insights to our clients while delivering innovative solutions, enhancing their HR teams, and connecting them with the best people for their business.
About The Headhunters
The Headhunters is a leading recruitment firm. The Headhunters uncovers top candidates through dedicated headhunting and sourcing. With a focus on finding the right fit, The Headhunters helps clients grow their businesses by building successful teams. The Headhunters primary areas of focus are accounting & finance, general management, office personnel, human resources, sales & marketing, customer service, operations & supply chain, engineering, and IT.
- EBITDA is defined as net income adjusted to exclude interest, taxes, depreciation, and amortization.
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Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This press release contains “forward-looking statements” or “forward-looking information” (collectively referred to hereafter as “forward-looking statements”) within the meaning of applicable Canadian securities legislation.
All statements that address activities, events, or developments that HIRE expects or anticipates will, or may, occur in the future, including statements about HIRE’s business prospects, future trends, plans, strategies and HIRE’s acquisition strategy and the expected benefits thereof, are forward-looking statements. In some cases, forward-looking statements are preceded by, followed by, or include words such as “may”, “will,” “would”, “could”, “should”, “believes”, “estimates”, “projects”, “potential”, “expects”, “plans”, “intends”, “proposes”, “anticipates”, “targeted”, “continues”, “forecasts”, “designed”, “goal”, “anticipate” or the negative of those words or other similar or comparable words.
Although the management of HIRE believes that the assumptions made and the expectations represented by such statements are reasonable, there can be no assurance that a forward-looking statement herein will prove to be accurate.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of HIRE to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements and include statements regarding the needs and future plans, prospects or acquisitions of the Company, including but not limited to future benefits and organic growth, technological growth, geographic expansion, and business and client service offerings derived from or attributable to the acquisition. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Such factors include, among others: risks related to the recent outbreak of COVID-19, which may have material adverse effects on the global financial markets, and its business, financial position, financial performance, and cash flows; the impact on the business of broader economic factors; alignment of HIRE’s cost structure with revenue; HIRE’s limited operating history and needs for additional capital; uncertainty relating to liquidity and capital requirements; risks inherent in HIRE’s acquisition strategy; HIRE may not be able to obtain the financing necessary to implement HIRE’s business plan; HIRE may not be able to obtain access to the technology necessary to compete in the recruiting industry; HIRE operates in a highly competitive industry and may be unable to retain clients or market share; barriers to client portability are low; reliance on key management; and compliance with financial reporting and other requirements as a public company. Additional risks and uncertainties applicable to the Company, as well as trends identified by the Company affecting it and the staffing industry, can be found in the Company’s continuous disclosure record available on SEDAR.
Such cautionary statements qualify all forward-looking statements made in this press release. HIRE undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.