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Blog Exposure - Hudson Global Concludes Divestiture of Its Recruitment & Talent Management Operations in Europe and Asia/Pacific; Appoints New CEO

Stock Monitor: Paychex Post Earnings Reporting

LONDON, UK / ACCESSWIRE / April 04, 2018 / Active-Investors.com has just released a free research report on Hudson Global, Inc. (NASDAQ: HSON) ("Hudson"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HSON as the Company's latest news hit the wire. On April 02, 2018, the Company which is a leading global talent solutions organization, declared that it has completed the sales of its recruitment and talent management operations in Europe and Asia/Pacific to strategic buyers in three transactions. Separately, the Company also announced key management changes. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Paychex, Inc. (NASDAQ: PAYX), which also belongs to the Services sector as the Company Hudson Global. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=PAYX

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Hudson Global most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=HSON

Financial Considerations

  • Hudson received cash proceeds of $39.0 million as consideration for these three transactions at closing, subject to customary post-closing adjustments. This included $24.8 million for the recruitment and talent management operations in Benelux; $7.7 million for the recruitment and talent management operations in the rest of Europe; and $6.4 million for the recruitment and talent management operations in Asia/Pacific.

  • The proceeds from the sale of European operations were lower than estimates, owing to higher borrowings in the UK.

  • It should also be noted that all of Hudson's debt was transferred to the buyers with these divestitures.

Hudson to Focus on Recruitment Process Outsourcing Business

On December 17, 2017, Hudson entered into definitive purchase agreements to sell its recruitment and talent management operations in Europe and Asia/Pacific to strategic buyers in three transactions. Subsequently, the Company held a special meeting of stockholders on March 20, 2018, wherein the proposals were approved by the majority stockholders.

Following these divestitures, the Company intends to focus on its growing global recruitment process outsourcing (RPO) business in the Americas, Asia/Pacific, and Europe, Middle-East, and Africa (EMEA). The Company has been working in this field for more than 18 years, and has developed deep expertise and reputation as one of the first RPO providers in the industry. At present, Hudson's RPO offers professional talent solutions to large long-term clients in multiple sectors with operations spread worldwide. Hudson shared that it intends to utilize the sales proceeds for investment in its RPO business, reduction in support staff costs, the Company's existing share repurchase program, and other corporate purposes.

In 2017, Hudson's RPO reported revenues of $60 million, with a gross margin of $42 million. The Company expects to generate positive earnings before interest, tax, depreciation, and amortization (EBITDA) and cash, before corporate overheads for the fiscal year 2018. Besides, Hudson had $45.1 million of cash and no debt on its balance sheet as on December 31, 2017, based on pro-forma financials after the divestitures.

Appointment of New CEO

Additionally, Hudson also appointed Jeffrey E. Eberwein as its Chief Executive Officer (CEO). He will succeed Stephen A. Nolan, effective from April 01, 2018.

Prior to this appointment, Eberwein was serving as the Chairman of the Company's Board of Directors and was the CEO of Lone Star Value Management, LLC, which is an investment firm that he founded in 2013.

Also, Richard K. Coleman, Jr., Hudson's Chairman of the compensation committee, has been appointed as the Chairman of the Board, effective as from April 01, 2018.

Ideal Appointment for CEO

Eberwein has been setting the strategic direction for Hudson, and has implemented a series of changes to improve governance and enhance stockholder value ever since he joined the Board in 2014. Coleman believes he has the adequate strategic and financial experience and leadership skills to serve as the Company's next CEO. Coleman remains positive that Eberwein will drive performance and execution at Hudson as the Company focuses on its global RPO business, and ensure adherence to the Company's legacy of exceptional customer service.

Stock Performance Snapshot

April 03, 2018 - At Tuesday's closing bell, Hudson Global's stock slightly fell 0.52%, ending the trading session at $1.92.

Volume traded for the day: 25.81 thousand shares.

Stock performance in the previous six-month period – up 31.51%; and past twelve-month period – up 52.38%

After yesterday's close, Hudson Global's market cap was at $60.17 million.

The stock is part of the Services sector, categorized under the Staffing & Outsourcing Services industry. This sector was up 0.9% at the end of the session.

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