Staffing firm VSN Inc. of Japan to be purchased by Adecco.
In a strategic move to expand its footprint in the Japanese staffing market and strengthen its presence in Asia, Adecco, the world's leading provider of HR solutions, acquired VSN Inc., a professional staffing firm based in Japan, in January 2012.
VSN Inc., headquartered in Tokyo with branches in eight major cities, specializes in providing highly skilled professionals, particularly in IT, engineering, and technical fields. This acquisition doubles Adecco's exposure to professional staffing in Japan and aligns well with Adecco's strategic goals.
The expected benefits of this acquisition include:
- Market Expansion: Gaining access to Japan’s robust and growing professional staffing market, allowing Adecco to tap into new client segments and industries.
- Enhanced Service Capabilities: Leveraging VSN's expertise in specialized staffing to offer a broader range of high-quality staffing solutions.
- Synergies and Cross-selling: Opportunities to cross-sell services between Adecco's existing operations and VSN’s client base, improving overall revenue potential.
- Local Presence and Relationships: Strengthening local market knowledge, regulatory compliance, and building closer relationships with Japanese clients and talent pools.
- Strategic Positioning: Positioning Adecco as a leading player in the Asia-Pacific professional staffing industry, supporting long-term growth ambitions.
The acquisition is expected to be immediately EPS accretive and EVA enhancing in the first year post the close of the deal, based on Adecco's internal hurdle rate of 10%. The transaction will be financed with Adecco's existing financing resources.
As of 2010, VSN Inc. generated revenues of EUR 157 million and is focused mainly on the Engineering segment. The enterprise value of VSN Inc. amounts to EUR 90 million, equivalent to an EV/EBITA multiple of approximately 6.5x. At the current spot exchange rate of 101.36 YEN/EUR, this translates to a JPY 9,120,400,000 enterprise value.
VSN Inc. currently employs over 200 full-time employees and has around 2,200 associates on assignment. The transaction remains subject to certain closing conditions and is expected to close in the first quarter of 2012.
For further information, please contact Adecco's Corporate Investor Relations at [email protected] or +41 (0) 44 878 89 89. Adecco's Corporate Press Office can be reached at [email protected] or +41 (0) 44 878 87 87.
Adecco, registered in Switzerland (ISIN: CH0012138605) and listed on the SIX Swiss Exchange (ADEN), offers a wide variety of services, connecting close to 750,000 associates with well over 100,000 clients every day. As a Fortune Global 500 company, Adecco continues to solidify its position as a global leader in HR solutions.
- Adecco's acquisition of VSN Inc. in the Japanese staffing market will allow for more opportunities in temporary staffing, as well as permanent placement, particularly in IT, engineering, and technical fields.
- The synergies and cross-selling from this acquisition could potentially lead to outsourcing of financial and business operations, further expanding Adecco's service offerings in the Asia-Pacific region.
- With the increased presence in the Japanese staffing market, Adecco, a global leader in HR solutions, can leverage technology more effectively to enhance its service capabilities and serve a broader client base.
