What happens when a major human resources company acquires one of the most frequented employment websites in the country? We will soon find out.
On August 9, 2016 a press release was issued announcing that Randstad Holding agreed to acquire Monster Worldwide, Inc. to the tune of $3.40 per share, which equates to a total sum of roughly $429 million. Despite the merger, Monster will not completely disappear but rather, “will continue operating as a separate and independent entity.”
Before digging into the agreement’s intended purpose, first a little background on Randstad Holding.
Randstad Holding is a multibillion HR services provider that works on a global scale self-reportedly worth approximately $24.5 billion. Since its inception in 1960, Ranstad has spread across nearly 40 countries and now stands as the second biggest HR services provider on the planet. Its services include assistance in:
- Sales and marketing
- Office and administration
- Human resources
- Consulting and workforce solutions
- Manufacturing and logistics
- Life sciences
- Finance and accounting
- Health care
- Information technology
- Legal matters
As for the merger, Randstad wanted to take control of Monster’s distribution network in order to construct the most extensive platform for HR services in the industry. According to Randstad, the new merger essentially connects the labor supply and market demand into a more seamless relationship, thereby making it easier than ever to match employers with prospective jobseekers.
As for Monster, the deal may be the company’s best bet for survival. A recent article published by VentureBeat revealed that in 2011 Monster earned an annual revenue of $1 billion. Yet, during the first six months in 2016 the company only generated $308.7 million.
Could buying up struggling job sites be the wave of the future for HR firms? If Randstad’s latest acquisition proves as lucrative as it sounds, it very well could be.