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Be the first with the news that moves the market- Hire Technologies (HIRE) has completed its acquisition of Ontario-based employment agency Kavin Group
- The company paid the vendors of Kavin Group a total of C$781,500 in cash for the purchase and issued 321,543 shares at a deemed price of 62.2 cents each
- With the deal complete, Hire says the added capacity will help it break into the general labour and healthcare sectors
- To facilitate the acquisition, the company has also closed two separate placements, raising a total of just over $4 million
- Hire Technologies is currently down 2.86 per cent to $0.68 per share
Hire Technologies (HIRE) has completed its acquisition of Ontario-based employment agency Kavin Group.
Under the terms of the agreement, which was announced on November 24, the company paid Kavin Group’s vendors a total of C$781,500 in cash and issued 321,543 common shares at a deemed price of 62.2 cents each.
As part of the deal, the vendors have agreed to provide payback amounts to Hire Technologies within a four-year period should Kavin Group’s financial results not meet the required thresholds.
With the acquisition complete, Hire Technologies says the added capacity will help the company break into the general labour and healthcare sectors across southern Ontario and other Canadian jurisdictions.
“Both service offerings are in high demand and provide Hire with new opportunities for growth,” said Simon Dealy, CEO of Hire Technologies.
“Not only are we continuing to make great strides in our acquisition strategy, but there has also been overwhelming interest from the investment community to become part of our story,” he added.
The deal follows the company’s recent acquisition of recruitment firm The Headhunters, which was completed in early September this year.
In connection with the acquisition of Kavin Group, the company also noted the completion of two separate private placements, which collectively raised just over $4 million.
Each unit issued under the offering is comprised of one common share in the company and one-half of a common share purchase warrant, exercisable at a price of $0.90 per share for a period of 24 months.
In addition to funding the company’s purchase of Kavin Group, the proceeds will also be used to execute Hire Technologies’ strategy of identifying, assessing and executing other accretive acquisitions.
Hire Technologies is currently down 2.86 per cent to $0.68 per share at 9:56am EST.
