Job Mobz to Acquire Iconic Recruiter.com Brand in Cash and Stock Deal
- Acquisition expected to expand Job Mobz's market presence and service portfolio
- Shares comprising 10% of Job Mobz
- Quarterly profit sharing expected in Q1 2024
- None.
- Demonstrates material step in executing strategic plan toward value optimization
- Provides cash at closing, a substantive share position in growing recruitment brand, and a 3-year services contract
NEW YORK, NY / ACCESSWIRE / August 17, 2023 / Recruiter.com Group, Inc. (NASDAQ:RCRT)(NASDAQ:RCRTW) (the "Company") - Job Mobz, recognized as a global leader in recruitment process outsourcing ("RPO") and an acclaimed RPO firm for 2022 by HRO Today, has announced a definitive agreement to acquire key intellectual property from the Company. This includes the prestigious domain name Recruiter.com, symbolizing a revolutionary turn in the recruitment sector.
This landmark acquisition amplifies Job Mobz's existing relationship with the Company, transcending their former strategic partnership that sought to drive revenue growth and streamline operations. The parties believe the acquisition will propel Job Mobz's calculated plans to expand its market presence and its service portfolio through the integration of the Company's brand assets.
The acquisition agreement features:
$1.5M in cash at closing;- An additional
$250 K payable within 90 days from closing; - Shares comprising ten percent (
10% ) of Job Mobz, a private California corporation that forecasts 2024 revenue in excess of$50 million with net profit margins of approximately 15-20% ; - Quarterly profit sharing expected to begin in Q1 2024; and
- A 3-year services agreement.
In a move to fortify their alliance, the Company and Job Mobz have inked a services agreement, entrusting the Company with the ongoing management of vital technological offerings including the Job Board, Recruiter Marketplace, and Leadership Program. The revenue from these endeavors will be equitably shared after accounting for agreed-upon operating expenses.
Jesse Tinsley, Founder, and CEO of Job Mobz, conveyed his excitement, declaring, "This acquisition heralds a transformative stage in our journey. Integrating Recruiter.com's esteemed intellectual property, including the iconic domain name, reaffirms our global commitment to delivering innovative recruitment solutions."
Miles Jennings, CEO of the Company, highlighted the synergy, articulating, "This strategic move sharpens our focus on core, platform-based initiatives. We are confident that Job Mobz will unlock the full potential of the Recruiter.com brand, propelling it to new heights."
As part of this acquisition, the terms of previous agreements will be adjusted, including the transitioning of certain Recruiter on Demand clients and staff to Job Mobz, in alignment with the fresh agreement.
The parties believe that this significant acquisition will solidify Job Mobz's position as a dynamic powerhouse in the recruitment industry, reinforcing its reputation as a leading RPO firm worldwide. More than a business transaction, this collaboration symbolizes a strategic realignment poised to redefine the landscape of global recruitment, the parties believe.
Jennings concluded, "Our transaction with Job Mobz is another piece of our strategic realignment and course for the future. We plan for CognoGroup, our planned spin-out of assets from the Company, to develop our business with Job Mobz through our three-year managed service contract and be the recipient of the profit sharing from our equity position. This transaction is a calculated drive toward a leaner, technology-driven company that also creates immediate value. We're confident that this bold step will help improve our short-term position and create long-term value."
About Recruiter.com Group, Inc.
Recruiter.com is a dynamic recruiting platform, delivering flexible talent acquisition solutions that span startups to Fortune 100 companies. Harnessing an extensive network of recruiting professionals and cutting-edge recruitment marketing automation, Recruiter.com navigates complex hiring challenges to serve businesses across the globe.
- For investor information, please visit https://investors.recruiter.com
- LinkedIn Recruiter Network Group: https://www.linkedin.com/groups/42370/
- LinkedIn Company Page: https://www.linkedin.com/company/1240434
- Twitter Company Page: https://twitter.com/recruiterdotcom
- Facebook Company Page: https://www.facebook.com/RecruiterDotCom
About Job Mobz
Founded in 2012, Job Mobz has quickly become one of the premier RPO firms worldwide. We specialize in Recruitment Process Outsourcing (RPO) services, offering sourcing, screening, identifying, and hiring world-class candidates in any given geography, function, and time frame. Job Mobz provides a wealth of employment services options, catering to early-stage startups and Fortune 500 clients alike with high-quality recruiting services. HRO Today recognized Job Mobz as a Bakers Dozen Top RPO in 2022.
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- LinkedIn company page: https://www.linkedin.com/company/job-mobz
- Twitter company page: https://twitter.com/JobMobz
Third-Party Projections
The forecasted revenue and profitability metrics mentioned in this press release are unaudited and are based on estimates provided by a private third party. These estimates are subject to inherent uncertainties, and actual results may differ materially. The Company makes no representation or warranty with respect to these third-party estimates and expressly disclaims any liability or responsibility for any loss or damage arising out of reliance on these projections.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates, forecasts, and projections about the industries in which the Company operates and the beliefs and assumptions of the Company's management. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "endeavors," "strives," "may," variations of such words, and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of the Company's future financial performance, the Company's anticipated growth and potentials in its business and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause the Company's actual results to differ materially and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the risk of the intellectual property acquisition not closing, the factors discussed in this release and the risks discussed in other documents the Company files with the Securities and Exchange Commission (SEC). More information on potential risks and uncertainties is available in the Company's recent filings with the SEC, including the Company's Form 10-K report, Form 10-Q reports, and Form 8-K reports. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Company Contact:
Corporate Communications
investors@recruiter.com
SOURCE: Recruiter.com Group, Inc.
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