Talent2 International Limited reports that its major shareholders Andrew Banks and Geoff Morgan have proposed to take the business private in a move to allow the company more flexibility to meet its strategic global growth plans. The privatization proposal, unanimously recommended by the Independent Board Committee (IBC) in the absence of a superior proposal and subject to an independent expert concluding that the offer is in the best interests of shareholders, aims to position Talent2 to be the best end-to-end talent management organization in the world by 2015 and expand its global footprint in human resources outsourcing (HRO) for the benefit of clients and stakeholders.
Talent2 announced to the Australian Securities Exchange that it has entered into an agreement with Morgan & Banks Investments (MBI), a company owned by Banks and Morgan, and Allegis Group, Inc, (Allegis) to acquire all outstanding Talent2 shares, for a cash consideration of $0.78 per share, by way of a Scheme of Arrangement (Scheme). The joint MBI and Allegis proposal demonstrates the strength of Talent2’s market offering.
The existing Allegis Talent2 alliance has proven successful in delivering global recruitment process outsourcing (RPO) and managed services. The privatization structure aims to create a closer bond between the two organizations. The proposal also falls in line with current HRO market consolidation trends to strengthen global capability and expertise.
Commenting on the announcement, John Rawlinson, Talent2, Group CEO said: “Talent2 continues to lead the HR revolution. Our strategy and intentions to be the best end-to-end talent management organization in the world by 2015 remain the same. We plan to reach this goal by continuing to focus on a transition to managed services and BPO and working closely with our customers to meet their needs.”
“This partnership will allow us to get even closer to our customers in the right locations, offering them the skills and services that best suit their requirements. Whilst our current focus in APAC will not change, we have always recognized the importance of being connected globally.. A closer partnership with Allegis will deepen our base in the Americas and Europe enabling us to compete more strongly in the global market place.
Today’s announcement further cements our intention to service global companies.”
“We believe this is a positive announcement for staff, management, customers, partners and shareholders. The proposed structure will provide our employees with greater opportunity; both locally and internationally to grow with the business," concluded Rawlinson.
As part of the agreement, MBI and Allegis do not intend to make any changes to the operating structure or the senior management team, which will continue to focus on driving performance and business growth for Talent2. Andrew Banks will continue to operate as Chairman of the ongoing organization and together with Geoff Morgan they will remain on the Board with day-to-day leadership responsibilities of the business.
Allegis Group, headquartered in Maryland, USA, is a multi-billion dollar organization and the largest privately held staffing firm in the world with its core business in North America and Europe providing International Staffing and Workforce Management Solutions. Allegis Group Services, a member of Allegis Group, has been a strategic alliance partner of Talent2 for three years.
“Allegis intends to extend its footprint into Asia Pacific markets through its investment in Talent2 and will benefit from Talent2’s depth of expertise in recruiting, learning, development, payroll and RPO, as well as its breadth of coverage across Asia Pacific, including Australia where the economy remains strong,” said Chris Hartman, President of Allegis Group’s International Operations.
Conditional on shareholder and court approval, among other things, the privatization is expected to be finalized by September 2012. Talent2 shareholders will be sent full details of the privatization proposal in July and will have the opportunity to vote at a scheme meeting to approve the proposed transaction.