Adecco to buy Florida-based MPS Group for $1.17B

Switzerland's Adecco to buy Florida-based staffing firm MPS Group for $1.17 billion

• On 12:05 pm EDT, Tuesday October 20, 2009

ZURICH (AP) -- Staffing firm Adecco SA said Tuesday it has offered $1.17 billion to buy Florida-based MPS Group Inc., one of the largest U.S. temporary staffers, and expects to seal the acquisition early next year.

The deal has been accepted by MPS Group's board of directors, but is still subject to shareholder and regulatory authority approval, Adecco said in a statement.

It said the transaction should be completed in the first quarter of 2010.

MPS Group, based in Jacksonville, Florida, provides temporary employment and consulting services in sectors including information technology, finance, accounting and engineering. It posted revenue of euro1.5 billion last year.

Adecco also said it will launch a mandatory convertible bond of 900 million Swiss francs ($885.8 million) to help fund the acquisition and strengthen its balance sheet.

Analysts viewed the deal positively but said the price offered was somewhat high.

"The acquisition is fully in line with Adecco's strategy to strengthen its professional staffing business," said Geneva broker Helvea, adding that the price "does not seem cheap."

Shares in Adecco closed down 5.3 percent at 51.70 francs ($50.89) on the Zurich exchange.