Dutch temporary job agency Randstad announced on Thursday it will buy the staffing activities of its competitor USG People in a multi-million euro deal to boost its position as a top player in the European marketplace.
"Randstad is to acquire staffing activities of USG People in Spain, Italy, Poland, Switzerland, Luxembourg and Austria," in an investment worth 20 million euros ($25 million), Randstad said in a statement.
The Amsterdam-based group said the acquisition will add some 434 million euros in annual revenue.
"The transaction offers Randstad an opportunity to increase the density of our network, which is important for our strategic targets," Randstad chief executive Ben Noteboom said.
"Randstad will become the number one player in Spain, Poland and Luxembourg, while we increase our market position in Italy and Switzerland. The transaction also enables us to access the Austrian market," he said.
Randstad expects the deal to be closed by June, subject to the usual regulatory approvals including from the European Commission.
Employing around 30,000 people in 39 countries, Randstad generated 17.1 billion euros in revenue last year.
Listed on the Amsterdam stock exchange's AEX index, USG People is one of Europe's leading human resources companies and operates in 10 different countries with a total revenue of 2.1 billion euros last year.