Dutch staffing agency Randstad will acquire online job site Monster Worldwide for approximately $429 million to expand its digital footprint. The Amsterdam-based buyer is offering $3.40 per share in cash, or 22.7% higher than Monday’s closing price for MWW. Shares of MWW jumped more than 27% at its highest point in Tuesday’s trading.
Randstad plans to keep Monster as a separate and independent entity under the Monster name, though it will be delisted from the New York Stock Exchange, and finance the purchase through existing credit facilities.
“In an era of massive technological change, employers are challenged to identify better ways to source and engage talent,” said Randstad CEO Jacques van den Broek in a statement. “With its industry leading technology platform and easy to use digital, social, and mobile solutions, Monster is a natural complement to Randstad.” On Monster’s side, CEO Tim Yates added “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.”
The sale of Monster doesn’t come as much of a shock, as the company was reportedly looking for a buyer as far back as four years ago. The company has struggled greatly, which was again seen in the earnings report it released today before market open, that was somewhat overshadowed by the acquisition news.
For the quarter ended in June Monster reported revenue of $150.9 million, down sharply from $167.7 million for the same period last year, and below the Zacks Consensus Estimate of $156.83 million. In regards to EPS the company also missed the Zacks Consensus Estimate, posting EPS of -$0.04, below the estimate of $0.00.
Despite layoffs in recent years, and an attempt to reboot products and make small acquisitions, it seems nothing could help Monster regain its footing. Back in 2011, the company posted $1 billion in revenue. Fast forward to this year and, had it remained an independent company, it was on pace to barely top half that.
Bottom Line
It was a long time coming, but Monster has finally been acquired after years of declining users, revenues, and profits. In the end, Monster stands as a cautionary tale about the hardest thing is the tech industry, which is to successfully innovate not once, but twice. It will be interesting to see what Randstad has in mind for the direction of Monster, but it will be no easy task to turn around the once extremely successful job-search site.
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Shares of Monster Worldwide (MWW) Surge On Acquisition Announcement, To Be Bought By Amsterdam-Based Randstad
Dutch staffing agency Randstad will acquire online job site Monster Worldwide for approximately $429 million to expand its digital footprint. The Amsterdam-based buyer is offering $3.40 per share in cash, or 22.7% higher than Monday’s closing price for MWW. Shares of MWW jumped more than 27% at its highest point in Tuesday’s trading.
Randstad plans to keep Monster as a separate and independent entity under the Monster name, though it will be delisted from the New York Stock Exchange, and finance the purchase through existing credit facilities.
“In an era of massive technological change, employers are challenged to identify better ways to source and engage talent,” said Randstad CEO Jacques van den Broek in a statement. “With its industry leading technology platform and easy to use digital, social, and mobile solutions, Monster is a natural complement to Randstad.” On Monster’s side, CEO Tim Yates added “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.”
The sale of Monster doesn’t come as much of a shock, as the company was reportedly looking for a buyer as far back as four years ago. The company has struggled greatly, which was again seen in the earnings report it released today before market open, that was somewhat overshadowed by the acquisition news.
For the quarter ended in June Monster reported revenue of $150.9 million, down sharply from $167.7 million for the same period last year, and below the Zacks Consensus Estimate of $156.83 million. In regards to EPS the company also missed the Zacks Consensus Estimate, posting EPS of -$0.04, below the estimate of $0.00.
Despite layoffs in recent years, and an attempt to reboot products and make small acquisitions, it seems nothing could help Monster regain its footing. Back in 2011, the company posted $1 billion in revenue. Fast forward to this year and, had it remained an independent company, it was on pace to barely top half that.
Bottom Line
It was a long time coming, but Monster has finally been acquired after years of declining users, revenues, and profits. In the end, Monster stands as a cautionary tale about the hardest thing is the tech industry, which is to successfully innovate not once, but twice. It will be interesting to see what Randstad has in mind for the direction of Monster, but it will be no easy task to turn around the once extremely successful job-search site.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>