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Kelly Services, Inc., also known as Kelly, is a global specialty talent solutions provider offering workforce solutions and consulting services. With operations in various sectors like financial services, IT, law, and more, the company is divided into five segments, including Professional & Industrial, Science, Engineering & Technology, Education, Outsourcing & Consulting, and International. Kelly recently acquired Motion Recruitment Partners, LLC, expanding its market-leading solutions portfolio and enhancing its focus on higher-margin, higher-growth specialty outcome-based and staffing services. The acquisition is part of Kelly's strategy to pursue inorganic investments, unlock significant capital, and optimize its operating model, aligning with its goal to provide top-quality talent solutions.
Keystone Partners announced the acquisition of The Ayers Group from Kelly Services on June 12, 2024. This strategic move aims to enhance Keystone's offerings in career management and leadership transformation within the New York metropolitan area. Founded in 1975, The Ayers Group is recognized for its expertise in executive coaching and organizational development. The integration of Ayers' experienced team and strong client relationships is expected to bolster Keystone's capabilities. Tim Baldwin, CEO of Keystone Partners, emphasized the synergy between the companies' values and missions. Larry Fisher of The Ayers Group also expressed enthusiasm for the merger's potential benefits for clients.
The 2024 Kelly Global Re:work Report reveals that poor workforce planning is hindering business growth, with 54% of executives identifying it as a primary issue. Despite turning to AI and automation, many organizations struggle to implement these technologies effectively and neglect proper employee training. The report shows 47% of executives miss business opportunities due to a lack of talent, and 42% fail to unlock their workforce's full potential. Employees cite a lack of skills development and career progression as main frustrations, with women and minority groups notably disadvantaged. While 64% of organizations invest in AI to boost productivity, only 36% of employees feel positive about it. The survey introduces the Workforce Resilience Index, highlighting Resilience Leaders who excel in revenue, profitability, customer satisfaction, recruitment, and retention, with Norway, Sweden, and Germany leading the way.
Kelly has completed its acquisition of Motion Recruitment Partners (MRP), a move expected to boost EBITDA margins. MRP will continue operating under its existing brands. The acquisition aims to enhance Kelly's staffing and consulting solutions in technology, telecommunications, and government sectors in North America, as well as its global RPO solutions. The purchase price was $425 million, with an additional $60 million contingent on certain performance criteria by March 2025. A webcast detailing the acquisition will be held on June 18, 2024.
Kelly reported Q1 2024 revenue of $1.05 billion, a 17.6% decrease due to sale of European staffing operations. Operating earnings were $26.8 million, up 34% on an adjusted basis. Adjusted EBITDA margin increased to 3.2%. Expect further margin expansion from acquiring MRP in Q2 2024. EPS improved to $0.70 from $0.29 in Q1 2023. Declared dividend of $0.075 per share.
Kelly (Nasdaq: KELYA, KELYB) will be participating in the 18th Annual Barrington Research Virtual Spring Investment Conference on May 16, 2024. The company's key executives will engage in one-on-one meetings, and their investor presentation is accessible on their website.
Kelly (Nasdaq: KELYA, KELYB) has entered into an agreement to acquire Motion Recruitment Partners, for $425 million in cash plus $60 million earnout potential. This transformational acquisition aims to enhance Kelly's staffing and consulting solutions, especially in technology, telecommunications, government specialties, and recruitment process outsourcing (RPO) globally. The deal is expected to close in the second quarter of 2024, subject to regulatory approvals.
KellyOCG has partnered with Upwork Enterprise to offer clients access to global independent talent pools through Helix UX. This strategic partnership allows KellyOCG clients to source, hire, and collaborate with skilled professionals on Upwork through Kelly's Human Cloud solution.
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