While returning to the workplace has experienced a healthy pause this Jan., Contingent Workforce M&A transactions are off to a profitable start. Private equity shareholders and companies looking for mergers are continuing to focus on Healthcare and IT Staffing companies that can source and manage contingent labor populations.
Contingent workforce staffing and worker management firms are keeping pace with private equity investment portfolios. Offering like-minded IT staffing mergers/acquisition options as opposed to an influx of capital provided by a Venture Capital group may be more favorable to business owners who wish to see their mission out or can benefit from an organization’s shared services and innovative customer strategies.
One representation is Houston-based, IT staffing firm Talent Group announced their acquisition of EdgeLink, a technology staffing company based out of Portland with offices in Salt Lake City and Denver. The transaction will merge Edgelink’s people, customers, and processes into Talent Group’s existing operations.
“This move will benefit our talented employees who now have more opportunities with a larger organization,” said EdgeLink Managing Director Jeff Miller who along with Mike Miadich, VP of Contract Services co-founded the company. ““Mike and I are very proud of the firm we have built and remain dedicated to serving our clients with excellence,” continued Miller, which indicates both principles will remain working post-merger.
Location of Edgelink’s offices in high-tech communities such as Portland and Denver coupled with an emerging tech hub in Salt Lake City ignited interest by Talent Group’s CEO Matthew Ripaldi who signaled the merger, “represents an opportunity to offer clients as added suite of services from multiple locations.”
Private Equity was not left behind at the launchpad and as past transactions alert us, was the incentive and strategic driver of the merger. “This is the third acquisition since our initial investment in 2018,” said Michael Babb, Managing Partner of Osceola Capital, a Talent Group investor. “We are actively targeting additional acquisitions as well that will strengthen our footprint and client services.”