The acquired firm will be combined with Modis with a goal to build a global smart industry leader
Adecco plans to merge AKKA Technologies and Modis. (Credit: Poppinsdepoppins/Wikipedia.org)
Swiss recruitment company Adecco Group has agreed to acquire AKKA Technologies for €2bn in a move to merge it with its global business unit Modis.
AKKA Technologies is a Belgium-based engineering consulting and research and development (R&D) services provider. The company has digital expertise in data analytics, autonomous driving, Internet of Things (IoT), mobile services, and embedded software.
On the other hand, Modis offers cross-industry expertise in technology and digital engineering consulting, tech talent services, and up- and re-skilling.
The merger of the two firms is expected to build a global smart industry player with a leading position in the engineering R&D market.
AKKA Technologies chairman and CEO Mauro Ricci said: “The innovation that our customers need is a never-ending story, and we must constantly evolve and invest in new technologies and in new skills to remain a valuable and long-term partner.
“While the engineering industry keeps changing, and its consolidation has not been completed yet, I am convinced that Modis is the ideal partner to write this new chapter in our history, together.”
Adecco Group said that AKKA Technologies and Modis will have scale via 50,000 engineering and digital experts, a global footprint, balanced industry profile, and strongholds in higher-growth sectors.
The combined business will provide a larger scale and opportunity for career growth and development for team members of the two firms, said Adecco Group.
Adecco Group CEO Alain Dehaze said: “The combined business will be a trusted partner to the world’s leading companies, with an ability to capture the accelerating demand for digital transformation through its Smart Industry focus.
“By combining AKKA Technologies and Modis, we are delivering a step-change moment in our Future@Work strategy. This is a compelling investment in a higher growth, higher margin business that has more predictable and resilient earnings and will create significant value for all stakeholders.”
Adecco Group will initially acquire a controlling stake of around 60% in AKKA Technologies from the Ricci family and SWILUX, a subsidiary of Compagnie Nationale à Portefeuille.
The first stage of the deal is expected to close in early Q1 2022. It will be contingent on regulatory approvals and other preceding customary conditions.
After completing the first stage, Adecco Group will launch a mandatory tender offer in Belgium and France for buying out the remaining shares of the company for €49 per share.