Impellam swoops for Â£330m-turnover group
Bedfordshire employment group Impellam has acquired a £330m-turnover specialist IT recruitment business with four UK offices.
Lorien, a provider of technology staffing, has been bought for an initial consideration of £22.3m in cash and £7.5m in new ordinary shares.
The cash payment will be satisfied by Impellam's existing cash resources and a £15m equity placing with new and existing shareholders, which the Luton-based group announced this morning.
In addition, the acquisition will be financed by a new five-year loan of £15m with Barclays Bank plc. The company has also extended its current invoice discounting facility with Barclays from £80m to £120m.
Impellam will also assume Lorien's net debt of £14m and pay an additional deferred consideration of up to £6m in January 2015 and up to £13.9m in January 2016, dependent on the EBITDA performance of Lorien during these two earn-out periods.
Lorien was founded in 1977 and is one of the largest independent specialist IT recruitment businesses in the UK, operating under the Lorien Resourcing and Vertical IT brands, through which it provides outsourced recruitment services and specialist staffing expertise to more than 400 customers.
The company has offices in London, Leeds, Manchester and Edinburgh.
Impellam Group chief executive Julia Robertson said: "The acquisition of Lorien is a significant step for Impellam and makes us the second largest staffing company in the UK. It has long been our ambition to develop a substantial presence in IT staffing and I am delighted that Lorien, as a market leader in UK technology staffing, is now part of the group."
The company has also announced that Derek O'Neill, a major shareholder and director of Lorien, has been appointed to the Impellam board as a non-executive director with effect from 10 November.