Technisource to Merge with Spherion Corporation
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Transaction to create industry leader in IT staffing and managed services
LITTLE ROCK, Ark., Nov. 14 -- Technisource, Inc. announced today that it will combine its operations with Spherion Corporation (NYSE:SFN) to create one of North America's largest providers of information technology staffing and services. The companies have signed a definitive agreement for Technisource to be acquired by Spherion for $140 million.
The combined IT unit will have exceptional capabilities in staffing and recruiting, integration and support services, and management services, serving large and mid-sized companies and organizations. Operating under the Technisource brand as a division of Spherion, it will draw on the resources of more than 8,000 employees and consultants, serving clients from 60 offices in 29 states. The annual revenue of the new Technisource will be in excess of $600 million.
"Both companies bring unique strengths to this merger," said Stephen R. Bova, chairman and chief executive officer of Technisource. "While Technisource will be able to leverage its practice-based specialty staffing and service offerings across a much larger customer base, undoubtedly, the greatest benefit comes from combining the very talented employees who also share similar core values."
Roy Krause, Spherion's president and chief executive officer, commented, "We are excited about adding this strong and successful brand to Spherion. The company is an excellent strategic fit for us. When we combine our existing IT staffing business with Technisource, we will be a very significant provider of IT staffing services in North America."
Technisource is a privately-held company whose majority investor is Charlesbank Capital Partners, a private equity investment firm that manages assets of more than $1.5 billion. Completion of the transaction is subject to customary regulatory conditions.
"This transaction is an important milestone for Technisource," said Kim Davis, managing partner, Charlesbank. "We have enjoyed our seven-year partnership and are delighted that Technisource is joining one of the finest companies in the industry, allowing it to expand further."
Michael Winwood, currently president of Technisource's consulting services division, will assume leadership of the combined business as its president. Winwood will report to William Grubbs, executive vice president and chief operating officer of Spherion.
Bova will continue to serve as chairman of Technisource and oversee the integration process. He is expected to leave the company mid-2008.
"The joining of our two organizations creates a powerful force in the industry," said Winwood. "For the clients of each company, the transaction expands their access to a greater array of IT talent and specialized services. At the same time, we can offer even more attractive and challenging opportunities for job seekers in the IT industry."
ABOUT TECHNISOURCE
Technisource, Inc. provides information technology and engineering services in more than 30 markets across the United States. Specializations include: IT Assessments and Outsourcing, Project Management, QA & Testing, Embedded Software Engineering, Application Development & Support, Network Integration, Deployment and Help Desk. The company's customer base of Fortune 500 and middle-market companies represents a wide variety of industries including: insurance, banking and finance, telecommunications, health care, manufacturing, retail and government. The company is headquartered in Little Rock, Ark. For more information, please visit www.technisource.com.
ABOUT SPHERION
Spherion Corporation (NYSE:SFN) is a leading recruiting and staffing company that provides integrated solutions to meet the evolving needs of companies and job candidates. As an industry pioneer for more than 60 years, Spherion has screened and placed millions of individuals in temporary, temp-to-hire and full-time jobs. Positions range from administrative and light industrial to a host of professions that include accounting/finance, information technology, engineering, manufacturing, legal, human resources and sales/marketing.
With approximately 700 locations in the United States and Canada, Spherion delivers innovative workforce solutions that improve business performance. Spherion provides its services to more than 8,000 customers, from Fortune 500 companies to a wide range of small and mid-size organizations. Employing more than 300,000 people annually through its network, Spherion is one of North America's largest employers. To learn more, visit www.spherion.com/.
Source: Technisource, Inc.
CONTACT:
Steve Bova,
Chairman and CEO,
+1-501-537-4555, or
media,
Sara Lunsford,
Director of Marketing & Communications,
+1-501-537-4514,
both of Technisource, Inc.
Web site: www.technisource.com/
