Peoplebank snaps up IT recruiter in $100m buy
Peoplebank Australia Ltd has set its sights on becoming Australia's largest information technology recruiter with the acquisition of fellow recruiter Ambit for AU$100 million.
It is the latest in a series of acquisitions for Peoplebank, which bought Western Australian IT&T recruitment firm Gryphon Consultants in May.
Peoplebank will fund the acquisition through an agreement with offshore private equity firm Navis Capital Partners.
The deal allows for a AU$50 million direct equity subscription and an underwriting commitment for a placement of AU$10 million in Peoplebank shares.
Another AU$60 million in financing, from Westpac Banking Corporation Ltd and Commonwealth Bank of Australia Ltd, would cover senior acquisition debt, the replacement of existing facilities and anticipated working capital requirements, Peoplebank said.
The combined company is expected to have revenues of about AU$500 million for the 2008 financial year, with earnings before interest tax depreciation and amortisation (EBITDA) of AU$24 million on a consolidated pro-forma basis.
Peoplebank managing director Leon Lau will head the merged group, with Ambit chief executive Peter Acheson stepping into the chief operating officer role.
The takeover is expected to be ratified at an extraordinary meeting of Peoplebank shareholders in late January.
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