Monster Worldwide, Inc. (NYSE:MWW) stock was up on Tuesday after the company announced a deal with human resources services company Randstad Holding.
Monster Worldwide, which deals in helping people find jobs, said that it will be acquired by Randstad. The Diemen, Netherlands-based company will be paying $3.40 per share for MWW, which is a roughly 23% premium over its closing price on Monday. The value of the deal comes to $429 million and Randstad will be funding it with cash through its existing credit facilities.
The deal has already received unanimous approval from both Monster Worldwide’s and Randstad’s Boards of Directors. MWW also said it would recommend shareholders to approve the deal once it begins. If approval is received, MWW will be delisted from the NYSE.
If the deal is completed, Monster Worldwide will remain its own company separate from Randstad. However, its multiple distribution channels are expected to help bridge the gap between the two similar services offered by the companies. Randstad also expects the acquisition to be immediately accretive to its earnings per share.
Monster Worldwide and Randstad are currently expecting the deal to be completed during the fourth quarter of 2016. This is dependent on approval from shareholders and regulators. There isn’t a financing condition required for the acquisition.
Monster Worldwide is being advised on legal maters by Dechert LLP and Evercore Group L.L.C. is providing financial advice for the company. Randstad’s legal advisor for the deal is Jones Day and its financial advisor is Wells Fargo Securities.
MWW shares were up 25% as of Tuesday morning.
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