ManpowerGroup (NYSE: MAN) is acquiring ettain group for $925 million in cash. Ettain is the 12th-largest IT staffing firm in the US, according to SIA. Plans call for ettain to become part of ManpowerGroup’s Experis business, and current ettain leadership will continue.
“We’re pleased to be announcing the acquisition of ettain, which accelerates our strategy of diversifying our business mix into higher growth and higher value services, continuing the expansion of our US and global Experis IT resourcing and services business,” ManpowerGroup Chairman and CEO Jonas Prising said.
Pro forma revenue for ettain group in the 12 months ended June 30 — which includes revenue from acquisitions as if they had occurred at the beginning of the period — was $724 million. EBITDA was $75 million. Ettain was founded in 1996 and has 28 offices. It’s based in Charlotte, North Carolina.
“As companies amplify their investments in technology, demand for the IT skills that Experis provides is accelerating too,” said Becky Frankiewicz, ManpowerGroup president North America. “That’s why we look forward to welcoming ettain’s talented team to ManpowerGroup.”
ManpowerGroup is acquiring all of ettain’s equity for $925 million to be paid at closing. Funding for the acquisition will come from existing cash and approximately $150 million from a revolving credit line, which the company expects to repay over 12 months.
The transaction is subject to regulatory approvals and customary closing conditions. It’s expected to close as early as the latter part of September 2021.
In a call with investors, Prising said Experis will have pro forma consolidated revenue of $4.5 billion for 2021 with the ettain deal. Experis revenue was estimated at $3.8 billion prior to the acquisition. He also noted ettain has a significant presence in financial services and healthcare IT — two areas Experis does not currently have as much depth in.
“This acquisition creates compelling opportunities for employees and offers superior value for clients,” said Trent Beekman, ettain group CEO. “This is a great opportunity for us to leverage our demonstrated expertise and strong reputation with Experis and ManpowerGroup’s global leadership in workforce solutions.”
Ettain group itself has made several recent acquisitions: INT Technologies, a veteran-owned IT staffing provider based in Mesa, Arizona, in February; Bradford & Galt, an IT staffing and consulting firm based in St. Louis, in May; and Centerline Partners, a management consulting firm focused on the life sciences industry, last December.
In 2019, ettain group received a majority investment from private equity firm Alvarez & Marsal Capital.