EmployBridge, the largest industrial staffing firm based on US revenue, agreed to acquire Bluecrew, an online platform that provides industrial workers on a W-2 basis.
Bluecrew, based in Chicago, was founded in 2015 and operates in more than 25 markets serving business that range from logistics to hospitality. It is being acquired from IAC/InterActiveCorp (NASDAQ: IAC).
“Our clients and talent increasingly expect a seamless digital experience,” EmployBridge CEO Billy Milam said, “and with the addition of Bluecrew, we will immediately accelerate our technological transformation to capture this growing demand while creating a flywheel to drive growth in the other areas of our business.”
Plans call for IAC/InterActiveCorp to receive consideration of both cash and stock in the combined company. As a result, IAC/InterActiveCorp will become a minority shareholder in the combined firm while, Apollo Funds will remain the combined company’s controlling shareholder.
The acquisition will generate more than $4 billion of pro forma revenue.
Bluecrew CEO Stephen Avalone will become chief platform officer of EmployBridge when the deal closes. He will report to Milam.
“By joining forces with EmployBridge, we will have the scale, resources and footprint to take Bluecrew’s model and accelerate a true transformation in the category by putting our best-in-class platform in the hands of so many more businesses nationwide,” Avalone said.
Looking ahead, the deal is expected to close this quarter. It’s subject to customary closing conditions.
“Since investing in EmployBridge in 2021, we have been committed to helping drive growth through strategic investments in technology, innovation and the talent experience,” said Apollo Partner Robert Kalsow-Ramos. “This transaction is an important step forward in these efforts.”
IAC/InterActiveCorp, the seller, still operates other businesses, including healthcare staffing firm Vivian Health, Care.com, The Daily Beast and Dotdash Meredith, the publisher of People magazine and Better Homes & Gardens.