Despite attempts to set Monster.com a hiring challenge in February of this year, Hotjobs and its rival have formed a union.
TMP Worldwide Inc, the parent company of career portal Monster.com has entered into an agreement to acquire HotJobs.com. TMP intends to maintain HotJobs.com as a stand-alone site and brand. Monster and HotJobs will be a formidable combination in the online recruitment industry, with a total of more than 14 million resumes and more than 650,000 jobs.
Under the terms of the acquisition, each share of HotJobs common stock outstanding will be exchanged for 0.2195 shares of TMP common stock. As a result, TMP anticipates issuing a total of approximately 8.3 million shares of its common stock, with a value of approximately $460 million, based on the 10-day average TMP closing stock price, representing a 20.9% premium to HotJobsí June 28, 2001 closing price. In addition, outstanding HotJobs options will be converted into options to acquire TMP Worldwide common stock at the same exchange ratio. After the completion of the merger, based on shares currently outstanding, TMP Worldwide will have approximately 116.8 million shares outstanding.
The Board of Directors of both companies have approved the transaction, which is expected to be tax-free to the shareholders of both companies. The merger is subject to the approval of HotJobsí shareholders, regulatory approval and other customary closing conditions, and is expected to close in the fourth quarter of 2001. The transaction is being accounted for as a pooling of interests under U.S. generally accepted accounting principles.
The acquisition will enable TMP Worldwide, whose services address every level of employment needs from intern to CEO, to manage the number one and number two global online career brands and web sites, according to industry rankings from Media Metrix.
ìThis acquisition will significantly expand our portfolio of services and our reach among job seekers and employers who view the Web as an essential channel for career management and finding talent,î said Andrew McKelvey, chairman and CEO of TMP Worldwide. ìHotJobs is an excellent fit for us, offering both strategic opportunities and operational synergies. As we move forward with the integration, we will leverage efficiencies of our newly combined services and scale. With the addition of HotJobs, TMP and Monster.comís strong global presence will be expanded by the increased breadth and depth of services.î
ìIím eager to welcome the HotJobsí employees to TMP Worldwide. HotJobsí contributions and achievements have helped to grow online recruitment into a credible industry,î said Jeff Taylor, CEO of Monster.com and TMP Interactive. ìThey have cultivated a unique niche in the career services and recruitment industry. Our team is excited about working with them to create the new marketplace for job seekers and employers.î
ìBecoming part of TMP Worldwide will provide our company with enormous opportunities for cross selling services and international growth,î added Dimitri Boylan, President and CEO of HotJobs. ìThis is an exciting new chapter for us and Iím excited to bring our talents and services across to the TMP spectrum of career services.î
www.monster.com
Monster.com announces agreement to acquire Hotjobs - 07/2001
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