Human resource outsourcing and recruitment company Chandler Macleod this week announced its acquisition of IT contracting and recruitment provider Diversiti from Accenture.
Contracts were signed on Tuesday and Diversiti is due to be handed over as of August 31.
Chandler Macleod's managing director Stephen Cartwright was unable to disclose the cost of the company, due in part to the fact that only one third of the purchase price is to be paid up front.
The remaining amount will be paid as a fixed percentage of Diversiti's revenue and a preferred supplier agreement with Accenture over the next two years. This arrangement, said Cartwright, would provide Accenture with incentive to ensure the acquisition goes smoothly and the company does well.
Diversiti specializes in recruiting IT specialists as well as non-IT professionals on a permanent or contractual basis, for government bodies and private companies engaged in IT implementation projects. With 450 contractors deployed to around 100 clients across Sydney, Melbourne, Brisbane and Canberra, Diversiti currently boasts revenues in the order of $65 million a year.
The acquisition is expected to increase Chandler Macleod's presence in the fast-growing IT contracting and recruitment sector, while increasing Diversiti's reach in the HR industry.
"IT contracting and recruitment has been the one key sector missing from our suite of service offerings to clients, and I am confident that the acquisition will make Chandler Macleod an even stronger competitor in the marketplace," Cartwright said.
"Day to day [the acquisition] won't change the way that it is run," he said, "other than the fact that Diversiti is now a part of a larger recruitment agency with access to a larger pool of clients."
The company will join Chandler Macleod's "house of specialist brands" business model while continuing to run under its current banner.