Navis exits Australia's Peoplebank to Recruit Holdings

The private equity firm invested A$60 million in Peoplebank in 2007 through a A$50 million equity subscription and a A$10 million placement, AVCJ Research's records show. It took a 77% stake in the business. The capital went towards the A$100 million takeover of rival Ambit to create Australia's largest IT recruiter.

In 2009, Navis teamed up with founder Leon Lau to acquire the remaining 23% of Peoplebank for A$13.4 million through a management buyout. Lau will retire from his role as chairman following the completion of the Recruit Holdings deal.

Recruit Holdings, which went public in Tokyo last year, is the largest staffing agency in Japan and among the biggest globally. The acquisition of Peoplebank is part of a broader expansion strategy through which the company wants to become the world's leading integrated HR service provider by 2020. It has also purchased a second Australian recruiter, Chandler Mcleod, for A$290.4 million.

Since 2010, Recruit Holdings has grown its overseas footprint in the US and Europe by purchasing The CSI Companies, Advantage Resourcing and Staffmark Holdings.

Founded in 1990, Peoplebank has 225 staff in the Asia Pacific region, with offices in Australia, Singapore, Hong Kong and Kuala Lumpur.

The company, which specializes in contract and permanent recruitment for the IT and telecom sectors, generated net sales of A$521.9 million for the year ended June 2014, down from A$569.8 million the previous year. EBITDA dropped from A$16.2 million to A$14.1 million, while net income rose from A$2.8 million to A$12.1 million, according to a Recruit Holdings filing.

"As part of the Recruit Holdings family, Peoplebank will have the resources to partner with clients on major projects and new business models. We also gain access to best-practice intellectual property to help amplify our growth strategies and, ultimately increase Peoplebank's lead as recruiter of choice in our markets," Peter Acheson, CEO of Peoplebank, said in a statement.

All existing staff and processes will be retained during the transition to the new parent company.

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• Topics
• Exits
• Support services
• Australasia
• North Asia
• Exit
• professional services
• Trade sale
• Navis Management
• Australia
• Japan