RPO provider Spherion is acquiring Technisource, Inc. for $140 million cash in a move to expand its presence in the information technology (IT) staffing market. With estimated 2007 revenues of $265 million, Technisource is considered one of the nation’s leading IT staffing companies and operates through a network of 34 branches with a focus on practice-based staffing and managed services.
Spherion President and CEO Roy Krause said the purchase would greatly enhace the company’s presence in the IT staffing area and leverage synergies from the two companies.
“We are excited about adding this strong and successful brand to Spherion. Technisource is a well-respected specialist IT services provider with a mid- market client focus and consistently high margins. The company is an excellent strategic fit for us,” he said. “Additionally, with this acquisition our professional and managed services business will approximate 40 percent of total revenues creating a much more balanced mix of business.”
According to the company, it will pay $120 million in cash and $20 million in notes.