Randstad is Buying Monster

Yes, each time you’ve turned around this year, there has been more big news in the recruiting field. If you didn’t get whiplash from the news we broke in May that SimplyHired was being acquired, or the surprise announcement about Microsoft and LinkedIn, the latest neck-strainer is that Monster is being acquired by the Dutch firm Randstad Holding.

News of at least a possible Monster sale is, well, not news. But, still, many will ponder a company that for so long has been almost synonymous with online recruiting and file it away under “I didn’t think it would ever happen.”

My colleague John Zappe, who has covered the company for years, said in 2011 Monster was a “takeover target” and noted that there’d been 20 or so rumors of a sale. Then, he said the company’s market cap was about a billion dollars, after decreasing by billions. Randstad, which has about 30,000 employees in 39 countries, will pay $429 million for Monster now.

Randstad was once known by many as a staffing or temp firm, but has moved into areas like recruitment process outsourcing and sourcing. It has hired a number of well-known names in the talent field in recent years, like Jason Roberts and Jim Stroud.

Monster will operate as a separate entity and keep its name. Randstad says the benefits to it include a) “… new and innovative capabilities that deliver greater value to job seekers and employers by bringing labor supply and demand closer together”; b) “services to offer both clients and candidates tools for increased efficiency and engagement, connecting more people to more jobs” and c) increased earnings per share for Randstad.

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Monster is being bought for about a 23 percent premium to its closing stock price on August 8. The deal is expected to be completed in the fourth quarter of this year. Randstad says its “balance sheet is expected to remain solid after the closing of the recent string of acquisitions” (like Ausy, Careo Group, and twago).

Monster announced just this summer it was buying Jobr, and over the years has purchased TalentBin, among others.

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3 Comments on “Randstad is Buying Monster

  1. One more indication how important data for analytics and behavior economics is becoming. RPO and sourcing are temporary business models that lost value, economically and functionally. Monster and many other companies became simply a data warehouse for companies like Randstad.

    1. “RPO and sourcing are temporary business models that lost value, economically and functionally.”

      This is true and why – as recruiters you should never have, and should not now – allow your “brand” to become or remain affixed to the “sourcing” nomenclature so popular in the industry today. Handwriting was on the wall for “sourcing” eight years ago in the Great Recession when it became synonymous with what everyone was doing/wanting to do/able to do sitting crosslegged in the sand in a hut 9000 miles away doing what the machines were becoming able to do at a fraction of the cost being charged by warm bodies type-type-typing away at heir keyboards. If you can’t value-add to that nonsense today – forget about it. The noise about “sourcing” today is just that – the echo from the glory days. If you can’t talk on the telephone – and no, constructing clever emails ain’t gonna bring home the bacon much longer either, trust me – the machines are figuring that one out too pretty darn quick and those messages will become copy-bait and en-massed and soon pretty much silent missives to the burned-out and deafened masses. If you can’t talk and charm on the phone – and maneuver yourself around the inside of a company adroitly – at your will – when and where you need to – and get to and influence key people on the inside of companies when and where you want to regardless what the gatekeepers are telling you about the existence of those people inside those companies and do all this under the proud title of RECRUITER – if you can’t do all that you may as well GO HOME and stay there until you learn another line of work where human contact doesn’t bother-scare the bejeezus out of you because that’s where future added value is going to be found – in the CONNECTOR – the ENABLER – the person who MAKES IT ALL HAPPEN – just as it has always been and, in all probability, always will be. Can I get a “Hell Yeah” out of this audience and can we FINALLY move on and start talking about something that matters beyond “tools”?

  2. The continued consolidation of media properties and tools only makes it harder for HR execs, Talent Acquisition leaders and Recruiters to navigate where to place their bets. Other recruiting media properties & tools should brace for additional consolidation, giving life to a new generation. This is a smart move for Randstad, finding a way into the job media space given Recruit’s investments. Monster has some strong assets but it will take a full review of the business and a lot of effort to find the best nuggets left and put it back into growth mode.

    *** Also, I have a significant concern for any Monster client using HRSmart as their ATS given the arms-length relationship Monster has with this technology. Monster does not own that product but they distribute it via Deltek.

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