Matchtech agrees Networkers International takeover, both say trading in line

28th Jan 2015 16:31

Engineering recruiter Matchtech has agreed to acquire rival AIM-listed recruiter Networkers International, with both companies issuing trading updates that reassured of good demand for their respective markets.The boards of both companies agreed engineering specialist Matchtech could acquire telecoms- and technology-focused Networkers for 34p per share in cash plus Matchtech shares, which values the Networkers at £57.9m and 67.4p per share on a fully diluted basis.The purchase scales up Matchtech in the UK and internationally and, it said, increases focus on key niche markets in the white collar recruitment space "and enabling the combined group to capitalise on the convergence of the skill sets" demanded by the two companies' main markets.Matchtech said net fee income (NFI) in the six months to 31 January 2015 was up 2% compared to the same period last year, with engineering up 6% and the smaller professional services business down 5%.The mix of contract and permanent remained the same as the previous year, with contract NFI accounting for 72% in the period.A trading update from Networkers confirmed trading activity during its second half was "much improved" compared with the first."This was driven by improved market conditions in the group's telecoms division as well as continued strong growth in the energy and engineering division. The second half of the year's trading also showed an improvement compared to the second half last year."