Kelly Services (NASDAQ: KELYA, KELYB) completed its acquisition of Motion Recruitment Partners from private equity firm Littlejohn & Co., the company announced today.
The deal was initially announced on May 3. It’s described as the largest acquisition in Kelly’s history.
“I’m excited to welcome MRP to the Kelly team and look forward to the significant growth and value creation we will deliver together,” Kelly President and CEO Peter Quigley said in a press release.
With the acquisition, Kelly aims to strengthen its staffing and consulting solutions in technology, telecom, government and RPO. It also aims to drive EBITDA margin expansion.
Kelly acquired MRP for $425 million, and an additional earn-out payment of $60 million may be due in the second quarter based on performance. Kelly funded the transaction through debt and available capital, including more than $100 million from the sale of its European staffing operations in January.
MRP’s capabilities complement Kelly’s science, engineering, technology and telecom business, Hugo Malan, president of Kelly SET, said in a press release.
“They bring extensive expertise in enterprise technology staffing as well as robust telecommunications and government specialties that align exceptionally well with our strong offerings in these segments,” Malan said.
Motion Recruitment Partners, based in Boston, will continue to deliver services through its existing operating companies and brands, according to Kelly.
The acquisition includes MRP’s brands:
- Motion Recruitment (IT staffing and managed solutions)
- Motion Consulting Group (IT consulting)
- Motion Telco (IT and telecom solutions)
- Tech in Motion (tech networking and events programs)
- TG Federal (government and IT subcontracting)
- Sevenstep (RPO, MSP and talent acquisition advisory/consulting)
“Sevenstep’s RPO and MSP offerings align exceptionally well with KellyOCG, and we believe the combined entities create a powerful story to bring to the market,” Tammy Browning, president of KellyOCG, said in a press release. “We look forward to authoring this story together with the Sevenstep team and unlocking new opportunities for growth over the long term.”