October 04, 2022 17:00 ET
Highly Strategic Combination to Establish Industry-Leading Workforce Management Platform in the Approximately $40 Billion Light Industrial Staffing Market
Combined Company Positioned to Deliver Unparalleled Job Opportunities for Workers and App-Based, Digitally Enabled Workforce Solutions for Businesses
ATLANTA and NEW YORK, Oct. 04, 2022 (GLOBE NEWSWIRE) -- EmployBridge, a leading provider of technology-enabled, light industrial workforce solutions in the United States, and IAC (NASDAQ: IAC) today announced they have entered into a definitive agreement for EmployBridge to acquire IAC's Bluecrew business unit, the first hourly W-2 workforce-as-a-service platform. The transaction will bring together EmployBridge's industry-leading offering and scale with Bluecrew's digital-first model and technology to create a leading national workforce management platform.
“The role of our industry has never been more critical as employers continue to face widespread hiring challenges across sectors,” said Billy Milam, CEO of EmployBridge. “Our clients and talent increasingly expect a seamless digital experience, and with the addition of Bluecrew, we will immediately accelerate our technological transformation to capture this growing demand, while creating a flywheel to drive growth in the other areas of our business. Bluecrew brings a world-class team and a sophisticated, self-service product that will complement our own distinguished offerings, allowing us to provide an unmatched experience.”
The highly strategic transaction will combine EmployBridge, an Apollo fund portfolio company and the nation's largest provider of light industrial staffing solutions, with Bluecrew's app-based model and proprietary digital platform to deliver industry-leading, tech-enabled workforce solutions for businesses and unparalleled opportunities for job seekers. This will establish the first national workforce-as-a-service platform with the scale and innovative technology to revolutionize the user experience and value proposition for both clients and workers.
Upon completion of the acquisition, Bluecrew CEO Stephen Avalone will be named Chief Platform Officer, reporting to EmployBridge CEO Billy Milam.
“As a digital-first company, Bluecrew has built a modern, seamless experience that re-imagines how people connect with hourly work, offering the flexibility, efficiency and reliability workers and employers both need to be competitive in today's rapidly evolving labor market,” said Stephen Avalone, CEO of Bluecrew. “By joining forces with EmployBridge, we will have the scale, resources and footprint to take Bluecrew's model and accelerate a true transformation in the category by putting our best-in-class platform in the hands of so many more businesses nationwide. We can't wait to get started.”
Under the terms of the agreement, IAC will receive consideration in the form of cash and combined company stock, becoming a minority shareholder in the combined company, which, upon completion of the transaction, will generate over $4 billion of pro forma revenue. Apollo funds will remain the combined company's controlling shareholder.
“Since investing in EmployBridge in 2021, we have been committed to helping drive growth through strategic investments in technology, innovation and the talent experience,” said Apollo Partner Robert Kalsow-Ramos. “This transaction is an important step forward in these efforts. We look forward to working alongside IAC and supporting the management team in its continued development in building the leading workforce management platform and ecosystem.”
The transaction is subject to customary closing conditions and is expected to be completed in the fourth quarter of 2022. RBC Capital Markets, Evercore and Houlihan Lokey acted as financial advisors to EmployBridge and Paul Weiss as legal counsel. Morrison Cohen acted as legal counsel to IAC.
As workforce specialists, EmployBridge provides value-added workforce solutions and job opportunities through focused specialty divisions including Decca, Hire Dynamics, ProDrivers, ProLogistix, Remedy Intelligent Staffing, RemX, Resdin, ResourceMFG, Select, Vaughan, and Westaff. Combining the advantages of national scale, in-depth local market knowledge, supply-chain expertise, and powerful recruiting and retention tools, EmployBridge is recognized by Staffing Industry Analysts as America's largest industrial staffing firm. The company puts more than 450,000 temporary associates to work annually across a network of 446 offices in 48 states. In 2021, EmployBridge provided more than 157 million work hours to 13,000 customers. EmployBridge is also helping close the skills gap in America's supply chain by providing free, career-focused skills development courses to its temporary associates as well as personal training courses through the firm's Better WorkLife Academy and Life Skills Studio; more than 28,000 temporary associates are currently enrolled. EmployBridge is majority-owned by certain investment funds managed directly or indirectly by Apollo Global Management, Inc. and its subsidiaries and affiliates. For more information, please visit www.employbridge.com.
Bluecrew is the first W-2 Workforce-as-a-Service platform combining the power of flexible W-2 labor, workforce management technology, and actionable data and analytics for businesses with fluctuating demand and labor needs. Bluecrew blends the reliability of traditional W-2 work with the technology and flexibility of the gig economy, all within a powerful and easy-to-use mobile app for hourly workers seeking flexible, yet stable employment options. Through its data-driven technology, Bluecrew enables seamless workforce scalability by matching businesses––across 25+ markets, spanning warehousing, logistics, catering, hospitality, manufacturing, and more––with over 100,000 pre-vetted, work-ready “Crew Members,” ensuring the most qualified workers and best matches for each job, every time. Learn more at www.bluecrewjobs.com.
IAC (NASDAQ: IAC) builds companies. We are guided by curiosity, a questioning of the status quo, and a desire to invent or acquire new products and brands. From the single seed that started as IAC over two decades ago have emerged 11 public companies and generations of exceptional leaders. We will always evolve, but our basic principles of financially disciplined opportunism will never change. IAC is today comprised of category leading businesses including Angi Inc. (NASDAQ: ANGI), Dotdash Meredith and Care.com among many others ranging from early stage to established businesses. IAC is headquartered in New York City with business locations worldwide.
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