Hudson Global Announces Sale of Netherlands Business and Agreement to Sell Hudson Americas IT Staffing Business
May 11, 2015 at 7:02 AM EDT
NEW YORK, May 11, 2015 (GLOBE NEWSWIRE) -- Hudson Global, Inc. (Nasdaq:HSON), a leading global talent solutions company, made the following announcements.
The company announced that it has completed the sale of its Netherlands business to InterBalance Group B.V. as part of a local management buyout of the business for €8.1 million in cash, subject to a customary post-closing working capital adjustment.
The company also announced that it has entered into a definitive agreement to sell its Americas IT staffing business to Mastech, Inc. The transaction is expected to close during the second quarter of 2015, subject to customary closing conditions. The terms of the agreement include a $17 million cash purchase price payable at closing with Hudson retaining the working capital of the Americas IT staffing business.
These sales are consistent with Hudson’s strategy to focus on its core businesses to accelerate growth, drive towards sustained profitability and increase the value of the company for its stockholders.
“We are pleased to announce the agreements to sell our Netherlands business and Americas IT staffing business. We look forward to completing the IT transaction and successfully transitioning these businesses to InterBalance and Mastech,” said Manolo Marquez, chairman and chief executive officer at Hudson.
Hudson is a global talent solutions company with expertise in leadership and specialized recruitment, recruitment process outsourcing, talent management and contracting solutions. We help our clients and candidates succeed by leveraging our expertise, deep industry and market knowledge, and proprietary assessment tools and techniques. Operating in nearly 20 countries through relationships with millions of specialized professionals, we bring an unparalleled ability to match talent with opportunities by assessing, recruiting, developing and engaging the best and brightest people for our clients. We combine broad geographic presence, world-class talent solutions and a tailored, consultative approach to help businesses and professionals achieve higher performance and outstanding results. More information is available at Hudson.com.
InterBalance Group B.V. is a new company formed through the investment of the management team and employees of Hudson’s Netherlands business supported by an external investor.
Leveraging the power of 29 years of IT experience, Mastech (NYSE MKT:MHH) provides Information Technology Staffing services in the disciplines which drive today's business operations. More information about Mastech can be found at Mastech's website: www.mastech.com.
This press release contains statements that the company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “predict,” “believe” and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties and assumptions, including industry and economic conditions' that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to, global economic fluctuations; the company’s ability to successfully achieve its strategic initiatives, including the company’s ability to complete the sale of its Americas IT staffing business on the anticipated timetable and terms; risks related to fluctuations in the company's operating results from quarter to quarter; the ability of clients to terminate their relationship with the company at any time; competition in the company's markets; risks associated with the company's investment strategy; risks related to international operations, including foreign currency fluctuations; the company's dependence on key management personnel; the company's ability to attract and retain highly skilled professionals; the company's ability to collect accounts receivable; the negative cash flows and operating losses that the company has experienced in recent periods and may experience from time to time in the future; restrictions on the company's operating flexibility due to the terms of its credit facilities; the company’s ability to achieve anticipated cost savings through its cost reduction initiatives; the company's heavy reliance on information systems and the impact of potentially losing or failing to develop technology; risks related to providing uninterrupted service to clients; the company's exposure to employment-related claims from clients, employers and regulatory authorities, current and former employees in connection with the company’s business reorganization initiatives and limits on related insurance coverage; the company’s ability to utilize net operating loss carry-forwards; volatility of the company's stock price; the impact of government regulations; restrictions imposed by blocking arrangements; risks related to activist stockholders; and risks related to limited availability under the company’s credit facilities. Additional information concerning these and other factors is contained in the company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. The company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.