A Nasdaq-listed company is eyeing a takeover of London-listed SThree.
SThree is a global STEM workforce consultancy with £1.3 billion revenues led by Timo Lehne (pictured).
This morning Circle8 confirmed the offer after media reports of a mooted approach caused a spike in SThree’s share price yesterday. Its market cap is £377 million at the time of writing (8.30am).
Circle8 is a technology and workforce solutions firm headquartered in New Jersey in the US.
It said the proposed deal was for cash to avoid dilution of its shareholders’ holdings.
“Although the process remains at an early stage, Circle8 believes a combination of the two companies represents a compelling strategic opportunity to significantly increase the combined group’s international scale and accelerate Circle8’s ambition to build a leading global IT and technology platform,” it stated.
“Circle8 has built significant scale across Europe, with a growing presence in North America, and has established a strong position across IT and technology.
“SThree brings recognized specialist brands, an established international presence and significant positions across technology, engineering and science… the gross revenues of the combined entities could approach $3bn.”
It added: “Circle8 believes its current Nasdaq valuation significantly undervalues the scale of the business, its position in the European IT and technology market, its continued commercial momentum and its long-term growth potential.”
Guus Franke, chairman and CEO of Circle8 Group, commented: “Our mission is clear: to build one of the world’s leading global IT and technology platforms.
“This is not about becoming bigger for the sake of size. It is about taking the technology platform we have built in Europe and creating a substantially larger and stronger global IT and technology company while protecting the ownership interests of the shareholders who are with us today.”