Servoca gobbles up Classic Education

1st Jul 2016 15:09

(ShareCast News) - Recruitment and outsourcing solutions provider Servoca announced its acquisition of Classic Education on Friday.The AIM-traded firm said the initial consideration is £1.2m, which will be funded from existing cash resources and debt facilities.Additionally, Servoca will pay deferred consideration of up to £1.9m, subject to Classic Education meeting certain profit targets for the two years following acquisition.Classic Education has been established for 11 years, Servoca's board said, and delivers educational recruitment services from a single office in Gravesend, Kent.In the year to 31 March its unaudited pre-tax profit was just under £0.6m, with net assets standing at £0.4m."We are delighted that Classic Education is now part of Servoca," said Servoca CEO Andy Church."This acquisition complements our existing branch network in education and gives us a local presence in the Kent and South London market, an area with significant demand for education recruitment services."Church said the acquisition of a long-established local provider in the area increases the company's national branch network coverage."In total we now have 15 UK locations and one overseas office from which we service local schools."We look forward to working with the staff and management that have helped build the business into one of the leading providers in the area," Church added.Servoca's board said it expects the acquisition to be earnings-enhancing in the year to 30 September 2017, with minimal impact in the current year.