Adecco Group acquires U.S.-based General Assembly for $413 million. The world’s largest temp staffing firm Adecco Group said Monday that it is buying startup specializing in programming, design, and management training General Assembly.
Swiss staffing company Adecco expands its business by adding the ability to provide job training and re-skilling services with this latest acquisition. The company is continued to expand into “high-growth and high-margin adjacent markets.”
General Assembly, founded by CEO Jake Schwartz, Matthew Brimer, Adam Pritzker, and Brad Hargreaves in 2011 that teaches entrepreneurs and business professionals practical technology skills fields such as data science and analysis. It brought $100 million in 2017 with a strong 2018 booking backlog, according to Adecco’s statement. Meaning the startup’s revenue had grown at a compound annual rate of 30 percent throughout the last three years.
“General Assembly is currently in a high-growth investment phase and is therefore expected to be modestly dilutive to Group earnings in 2018, the impact of which is included within the group’s current guidance on planned strategic investments,” Adecco said in a statement.
“From 2019, General Assembly is expected to be modestly accretive to earnings,” Adecco added. “In the medium-term General Assembly’s EBITA (core earnings) margins are anticipated to be significantly higher than the group average.”
Although Adecco will offer General Assembly’s services it will continue to operate as a separate division to provide its existing talent development, career transition and professional staffing solutions to fulfill client needs, as well as enhance both access to and the supply of the most in-demand skills CEO Alain Dehaze said.