HIRE Technologies gets post-Covid M&A ball rolling

The COVID-19 pandemic changed everything about its space, now HIRE Technologies (HIRE Technologies Stock Quote, Chart, News, Analysts, Financials TSXV:HIRE) is making moves in a post-pandemic staffing world.

The company today announced a definitive arm’s length share purchase agreement to acquire Leaders and Co., and executive search firm that was founded in 1999 and has offices across Canada.

Under the terms of the deal, HIRE will acquire Leaders and Co. for $4.4 million in cash, 3,559,871 common shares at $0.309 per share and $1.0 million in an earn-out payable over three years in cash subject to meeting certain prescribed financial thresholds.

Leaders posted EBITDA of $1.0-million on a topline of $3.9-million in its most recent fiscal year.

HIRE boss Simon Dealy commented on the deal, which will see Leaders’ management team stay on-board with its acquirer.

“The Partners at Leaders have created a successful practice based on deep research and exceptional customer service. I am convinced that they will contribute long-term value to HIRE as well as to our clients and existing portfolio companies,” he said. “We also look forward to collaborating closely with the other Leaders International affiliates in Vancouver, Edmonton, and Calgary and its international network through Penrhyn International.”

Leaders’ says the arrangement will allow it to expand on its original vision.

“It is imperative that executive search firms operate with a view to broaden their networks to remain competitive in our industry,” said Richard Joly, Managing Partner of Leaders. “First with our national alliances in 2018, then with our international network at Penrhyn International, and now with our partnership at HIRE, our team of 17 professionals can continue to grow their practices and leverage proprietary tools, including the Leaders Report®, all while being supported by HIRE’s shared services.”

The deal is the first acquisition for HIRE since the pickup of Pulsify, a Boston-based cloud platform in the hiring sector. But in a wide-ranging recent interview with Cantech Letter, Dealy suggested it will not be the last. When asked by Cantech’s Justin Ma if he had more M&A in mind, Dealy was quick to answer.

“HIRE Technologies is a capital allocator, so I would says yes. We’re always looking to do acquisitions. There’s a pretty robust pipeline we have right now, in fact, our pipeline of acquisition targets has quadrupled since the start of the pandemic. We’ve got some really amazing business leaders that we are getting to talk to that we are in various stages of discussion with. So yes, we’re always looking to execute more acquisitions.

At press time, shares of HIRE Technologies were up 6.1 per cent to $0.35.

Disclosure: HIRE Technologies is an annual sponsor of Cantech Letter and Nick Waddell owns shares of the company