28th Jan 2015 07:46
LONDON (Alliance News) - Matchtech Group PLC Wednesday said it has agreed a recommended takeover of Networkers International PLC in a deal that values that company at GBP57.9 million, while Matchtech Chief Executive Adrian Gunn has decided that the deal marks a good opportunity to bring forward his retirement and has stepped down with immediate effect.
In a joint statement, Matchtech and Networkers said they've agreed a deal which will see Networkers shareholders get 34 pence in cash and 0.063256 new Matchtech shares for each Networkers share they own. That represents an indicative value of 67.4 pence per Networkers share, a 22.5% premium over Tuesday's closing price of 55.0 pence.
Matchtech said it expects the deal to boost its earnings in the first full financial year after it completes. It said it will accelerate its aim of becoming the "market leading" specialist recruiter in engineering and technology in the UK and internationally.
"We continue to see major opportunities in our core markets of white collar engineering and technology recruitment. Both digitization and converging technology is creating further opportunities in these areas and the addition of telecoms recruitment to our portfolio creates an even stronger specialist group," Matchtech's new CEO Brian Wilkinson said in a statement.
"In addition, Networkers' long-standing, substantial and profitable overseas operations will enable us to accelerate the introduction of our Engineering services to our international customers with a considerably reduced cost, risk and time profile," he added.
Wilkinson has taken over the CEO role after giving up his role of executive chairman. Non-Executive Director Ric Piper is to be interim non-executive chairman until the board identifies a permanent replacement.
Gunn had planned to retire in 2016, but said the takeover deal meant it was an appropriate time to bring forward his retirement. He's been with Matchtech for 26 years, and its CEO for eight years.
Matchtech said it will form a new management board once the takeover is completed, with the combined group led by Wilkinson and including Tony Dyer as group chief financial officer and Keith Lewis as chief operating officer of the existing Matchtech businesses. The team will also include current Networkers CEO Spencer Manuel, and Networkers CFO Jon Plassard.
Roger Goodman, currently non-executive chairman of Networkers, will join the Matchtech Board as a non-executive director.
By Steve McGrath; [email protected]; @stevemcgrath1
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