General Employment acquires Dallas IT & professional staffing company Paladin Consulting
General Employment Enterprises, Inc. has acquired Dallas-based information technology and professional staffing company Paladin Consulting, Inc. ("Paladin"), effective 1st January 2016.
The acquisition by the Illinois-based company is expected to be accretive to earnings per share and anticipated to generate solid earnings before interest, taxes, depreciation and amortization (EBITDA) and estimated projected revenue in the range of $16m to $18m for calendar 2016. Under the terms of the sale and purchase agreement, General Employment acquired 100% of the Paladin common stock for consideration including cash, stock, seller financing and contingent consideration ("earn out"). The Company, in combination with Paladin and the other completed acquisitions to date, estimates that combined projected pro forma revenue for the calendar year 2016 is anticipated to reach or exceed approximately $90m, more than double the reported revenue for the fiscal year ended 30th September 2015.
Enoch Timothy, chairman of Paladin Consulting, said, "I am thrilled to be joining a company with explosive growth potential like General Employment. CEO Derek Dewan has a winning business model and a proven track record of success. Our team looks forward to working with an established staffing and human resource solutions visionary like Derek and repeating the success he achieved building global staffing giant MPS Group and its specialty staffing divisions including Modis,"
Chairman and CEO of General Employment, Derek Dewan, commented, "We are pleased to announce this exciting acquisition that will be accretive to earnings. Paladin, led by Chairman Enoch Timothy, exemplifies the ideal professional staffing company providing a vast array of human capital solutions in a number of areas that are in high demand. This acquisition allows the Company to increase its service capability nationwide. In addition, we are fortunate that Enoch Timothy brings a dedicated recruiting and sales team to our Company to help grow our combined organization. The acquisition 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 and increasing our professional services capabilities in accounting and engineering. 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 and other professional services offerings. We welcome the entire Paladin team to the General Employment family and are pleased that they will assist the Company in accomplishing its goals while advancing their careers."