6 June 2000
HAYS SIGNS AN AGREEMENT TO ACQUIRE
UK IT RECRUITMENT BUSINESS
Hays plc today announces that it has signed an agreement to acquire a
specialist IT recruitment agency, QA Myriad Limited ('Myriad'), a subsidiary
of Skillsgroup plc (Skillsgroup), for a total cash consideration of £31.2
million, subject to adjustment at completion.
The acquisition is conditional upon approval of the shareholders of
Skillsgroup, which will be considered at an extraordinary general meeting of
shareholders expected to be held on 27 June 2000.
Myriad provides contract IT recruitment throughout the UK, supported by a
range of permanent recruitment services. Its blue-chip customer base
comprises mainly finance, IT and telecommunications organisations, with the
majority of these operating under longstanding preferred supplier agreements.
Both the management and culture of Myriad complement the existing activities
of Hays IT in these sectors, enabling the enlarged business to benefit from
its strong position as a leader in this high growth, specialist market.
In the year to 30 November 1999, Myriad had turnover of £65.6 million and
generated an operating profit of £3.3 million. Myriad's net assets at 30
November 1999 were £5.4 million.
Ronnie Frost, Chairman of Hays plc, today commented:
'The acquisition of Myriad, following the acquisition last year of Hutchinson
Smith, will enhance Hays IT as one of the leading providers of IT contract
staff in the UK. Blue-chip customers are continuing to consolidate their
supplier base, and we believe our strong market position provides us with an
excellent opportunity in a market which is forecast to return to a strong
growth path, following the recent impact of the Y2K lockdown'.
For further information, please contact:
Ronnie Frost Chairman, Hays plc 01483 302 203
Jon Coles Brunswick 020 7404 5959