Interquest Group to acquire IT staffing firm ECOM

27th Nov 2013 14:16

IT staffing specialist InterQuest Group is to acquire rival ECOM recruitment for 7.04m pounds in cash and new shares. The take-over target is described as the UK's leading digital technology recruitment business.Initially the Marylebone-based outfit will pay £3.54m, comprising £3.04m in cash and £0.5m by the issue of 558,659 new shares, at 89.5p per share.The new securities will be issued upon completion of the transaction and are expected to begin trading on December 3rd. A further deferred consideration of £2.16m is payable by way of a loan note with a 3% coupon of which £0.5m is payable in May 2014 and £1.66m in December 2014.In addition, up to a further £1.34m is subject to an earn-out could be payable in December 2014 if the business achieves £1.34m of earnings before interest and tax in the year to October 31st 2014.As regards current trading conditions Interquest revealed that it has been an excellent year for the company, especially within the UK, although it Singapore operations continue to experience difficulties. Nevertheless, and thanks to the UK, trading for the group is in line with management's expectations.Gary Ashworth, Executive Chairman of InterQuest, highlighted the "great operational and cultural fit" between both companies. Chief Executive Mark Braund said: "This acquisition drives at the heart of what we do. The addition of ECOM to our stable of niche and specialist recruitment businesses will help InterQuest rapidly answer the challenges faced by our most important clients planning or working on digital-based projects." As of 14:46 shares of Interquest were down by 3.65% to the 92.5p level. AB