Workforce solutions provider ManpowerGroup (MAN) has signed an all-cash deal of $925 million to acquire ettain group, a privately-held IT resourcing and services company.
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Upon the completion of the deal, ettain will become a part of ManpowerGroup’s global IT resourcing and services brand, Experis. The deal is expected to bolster ManpowerGroup’s strength in delivering IT services to the financial services and healthcare industries.
The transaction will be funded with ManpowerGroup’s existing cash balance and about $150 million from its revolving credit facility, which the company seeks to repay over a 12-month period. The deal is expected to close by September 2021. (See ManpowerGroup stock charts on TipRanks)
The Chairman and CEO of ManpowerGroup, Jonas Prising, said, “We’re pleased to be announcing the acquisition of ettain, which accelerates our strategy of diversifying our business mix into higher growth and higher value services, continuing the expansion of our U.S. and global Experis IT resourcing and services business”.
Last month, Robert W. Baird analyst Mark Marcon reiterated a Buy rating on the stock with a price target of $143 (upside potential of 18.1% from current levels).
Marcon noted, “Management is investing in technology initiatives such as their PowerSuite tech stack and mobile applications/platforms (such as rolling out applications similar to Mon Manpower in other key markets) which should provide scalability and enhance recruiter productivity.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 3 Buys, 1 Hold and 1 Sell. The average ManpowerGroup price target of $123.80 implies 2.25% upside potential.
MAN scores an 8 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market averages.
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