Randstad Acquires Monster – Strengthens “Human Capital” Offerings

Last week, Randstad Holding NV, the second-largest staffing and recruiting business in the world, announced the acquisition of Monster, the well-known on-line recruitment business. Monster was one of the first “jobs boards” launched back in the 1990s. The acquisition price of $429 million in cash, or $3.40 per share represents a 23% premium to Monster’s previous share price but is way below Monster’s peak valuation at $8 billion.

Whilst Monster seemed to have some “first mover” or at least early mover advantage in that market, it has faced strong competition from LinkedIn, Indeed and many others. Why would Randstad buy Monster? Firms in this industry seem to be diversifying into a portfolio of human capital management services and solutions, as well as getting deeper into technology-based solutions and products.

But if you really want the full analysis on this, read the excellent article here on our sister Spend Matters US site from Andrew Karpie. He knows more about this market, the whole world of “worker intermediation platforms” and all the other technological developments around it, than anyone else. And I mean anyone else. Here is a short extract but it is worth reading his whole piece.

“Changes in what businesses need, talent supply constraints, demographics of talent and digitization have been increasingly transforming the talent supply chain. Technology has not really been a disruptor but more a catalyst to gradual supply chain innovation. Perhaps more important, well-resourced talent supply chain players like Randstad are attempting to harness these developments and reconfigure both old and new supply chain assets into innovative, often more technology-enabled, talent access and delivery solutions.

This is a dynamic and ongoing set of developments occurring under the but critical for contingent workforce procurement and supply chain practitioners to get ahead of. And more important than just observing and understanding the reconfiguration and digitization of talent supply chain assets is being active participants in shaping those developments — not leaving it all to the suppliers to design and offer. For more on this trend of talent supply chain evolution, see The Digital Evolution of the Contingent Workforce Supply Chain: What Does It Mean? (Part 1).”

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