For those who missed these announcements, here is a summary of some recent M&A deals announced in the HR space.
1. Kenexa announced on December 21st 2006 that it will buy Webhire for about $34 million in cash. This represents about a 2X revenue valuation based on Webhire's annual revenue of about 17.34 million. Webhire's current market cap is about 27.13 million.
2. First Advantage Corporation (NASDAQ: FADV), a global risk mitigation and business solutions provider, announced the acquisition of TruStar Solutions, Inc., an online talent acquisition services firm. The addition of TruStar Solutions' services expands First Advantage Employer Services' portfolio, which provides employers with hiring solutions that now encompasses recruiting strategies, applicant tracking, tax credits screening, background screening, substance abuse testing and more.
3. Long Term Care Group, Inc., the country's largest long term care insurance administrator, announced it has closed on a transaction to acquire Nation's CareLink, a national provider of underwriting and claims assessments and care management services.
4. PAI Group, Inc. announced the acquisition of five companies to create the firm's newly established payroll processing division which will operate under the name PayChoice. The companies acquired by PAI Group, Inc. include: Payrolls Plus, Inc. of Danvers, MA, Payroll Associates of Dallas, TX, PayChoice division of ECI of Elkhart, IN, Payday Solutions of Louisville, KY and PromptPay, Inc. of Buffalo, NY.
5. Kronos announced details on the nearly $75 million they spent on acquisitions in 2005. Kronos has been acquiring North American resellers of its software the past several years, with only four remaining in the United States. Resellers accounted for $6 million of Kronos' $519 million in revenue during its fiscal 2005 period ending Sept. 30. In its annual report filed Dec. 9, Kronos disclosed it spent $31 million in September to acquire CTR Systems Time and Attendance Inc., which resold Kronos applications in Pennsylvania. The company also revealed it spent $17 million in February to acquire NexTime Inc., a Tennessee reseller.
6. TALX acquired Business Incentives Inc., doing business as Management Insights Inc., for $24 million. The Dallas-based, 25-year-old Management Insights is expected to have annual revenue of more than $9 million. Management Insights is a provider of tax credit and incentive services
7. Barrett Business Services, Inc. (Nasdaq:BBSI) announced that it has reached an agreement in principle to acquire certain assets of Pro HR, LLC, headquartered in Boise, Idaho, effective January 1, 2006. Pro HR, LLC, a privately-held professional employer organization (PEO) company, operates three offices in Boise and Rexburg, Idaho, and Grand Junction, Colorado. Pro HR has estimated its 2006 gross revenues will total $110 million.
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