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US staffing agency General Employment acquires IT staffing agency

The acquisition is expected to be accretive to earnings per share and anticipated to generate significant earnings before interest, taxes, depreciation and amortization (EBITDA). Under the terms of the sale and purchase agreement, General Employment acquired 100% of the Access Data common stock for a combination of consideration including cash, stock and seller financing and the corporation is now a wholly owned subsidiary of the Company.

General Employment utilized cash from its follow on equity offering completed in late July of this year pursuant to its $75m shelf registration plus a portion of the proceeds from a three year $4.2m mezzanine debt financing put into place contemporaneously with the transaction to help fund a portion of the purchase price of Access Data and for future acquisitions.

Additional terms of the transaction were not disclosed. Access Data had revenue of approximately $21m and EBITDA of approximately $2.5m for its fiscal year ended 2014 based on its audited financial statements.

Dan Dampier, president of Access Data, said, It is very exciting to be part of a company with explosive growth potential like General Employment. CEO Derek Dewan has a winning business model and a proven track record of success. His incredible building of the publicly traded MPS Group through organic growth and strategic acquisitions led me to explore further the opportunity to join the Company. Our team looks forward to working with a proven IT staffing and solutions visionary like Derek and replicating the success he achieved creating a global staffing giant."

Chairman and CEO of General Employment, Derek Dewan, commented, "We are pleased to announce this exciting and accretive acquisition. Access Data led by Dan Dampier exemplifies the ideal information technology staffing company providing human capital solutions in a number of technical areas that are in high demand. By acquiring Access Data, the Company is able to expand its geographic footprint into the mountain-west market and increase it service capability nationwide. In addition, we are fortunate that he brings a dedicated and seasoned recruiting and sales team to our Company who has significant expertise across a broad spectrum of IT staffing services.

"The recruiting processes, sales methodology and performance measurement program in place at Access Data are superb. The acquisition also fits within our strategic growth strategy, which includes expansion of our IT staff augmentation and solutions presence into key markets where there is significant spending for IT staffing services. We are growing our Company's geographic footprint to better serve our national clients in more key markets with a broader and deeper breadth of IT service offerings. We welcome the entire Access Data team to the General Employment family and are delighted that they will assist the Company in achieving its goals while advancing their careers."



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