Acquisition of PAT Management AB
Harvey Nash, the global recruitment and professional services group, is pleased to announce the acquisition of PAT Management AB ("PAT Management"), a Swedish human resource consultancy company, by its Swedish subsidiary, Alumni AB from PAT Invest AB, a company owned by Hans Fribergh and Linda Wahlström.
An initial cash consideration of SEK 18.2 million (£1.7m) ("Initial Consideration") will be payable in cash on completion of the Acquisition, with a customary adjustment for working capital and work in progress determined following completion. Up to 19 million SEK (£1.7m) of deferred cash consideration ("Deferred Consideration") may become payable over the three year period following completion based on levels of operating profits and work in progress. Linda Wahlström will continue to act as Managing Director of PAT Management until 31 January 2020.
This strategically valuable bolt-on acquisition complements Alumni, Harvey Nash Group's existing recruitment and executive search business in the Nordic region.
For the year ended 31 December 2016, PAT Management delivered profit before tax of SEK 6.3 million (£0.57 million) on turnover of SEK 14.5 million (£1.3 million) and had gross assets of SEK 9.8 million (£1.3 million) at 31 December 2016. The Initial Consideration and, if applicable, the Deferred Consideration, will be satisfied from the Group's existing cash resources and facilities.
Albert Ellis, CEO Harvey Nash Group, said:
"The acquisition increases the depth, expertise and scale of our leadership services and higher margin senior appointments executive search business in the Nordics. Leadership assessment and development is a crucial part of the service offering for executive search and also underpins the client relationship. Leadership services of this nature are typically longer than an executive search assignment and therefore adds to better revenue visibility and improves the overall margin.
"Harvey Nash Alumni and PAT Management are both leading brands in the Nordics. The acquisition will consolidate and complement our already compelling offering, strengthening the Group's presence in that region even further."
The Acquisition constitutes a Class 2 transaction for the purposes of the UK Financial Authority's Listing Rules and, as such, does not require Harvey Nash shareholders' approval.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) no 596/2014.
For further information, please contact:
Harvey Nash Group plc
Albert Ellis, CEO
Mark Garratt, CFO
Tel: 020 7333 2635
Tel: 020 7796 4133
About Harvey Nash:
Harvey Nash is a global recruitment business focusing on technology and digital talent recruitment. O unique portfolio of services, from executive search, professional recruitment to offshore solutions, enables us to engage with clients at every stage of the business cycle. Our relationship-based model underpins the delivery of resilient financial returns and supports sustainable returns to shareholders.
With 8,000 professionals in 47 offices across the USA, Europe, Asia and Australia, Harvey Nash has the reach and resources of a global organisation, while fostering a culture of innovation and autonomy that empowers its employees and associates to deliver client-centric solutions.
About Pat Management:
PAT Management is a well-established consulting company, based in Sweden, which works primarily with personal assessments, leadership training and executive team development. Pat Management currently employs 8 people, five of whom are chartered psychologists.