Adecco Group advances digital capabilities through acquisition of QAPA
The Adecco Group has today announced the acquisition of QAPA, the number two provider of fully digital workforce solutions in France, for an initial consideration of EUR 65 million.
QAPA deploys latest technologies, particularly artificial intelligence and cloud architecture, to provide fast, flexible, and reliable candidate sourcing, matching, and back-office processing at a low cost and entirely through digital means, i.e., 100% online, remotely and automatically, in real-time, 24/7. On average, QAPA delivers six qualified and available candidates per job offer and in over 80 percent of instances finds at least one qualified match within four hours.
The company launched its digital platform in 2017 and has since established a solid reputation for providing high quality candidate and client applications. It boasts over 500 customers from small and medium size enterprises to blue-chip clients, with a talent base of approximately 4.5 million workers that are mainly deployed on a flexible placement basis.
QAPA delivered EUR 45 million turnover in the 12 months to end June 2021 and has around 60 employees. In 2020, revenues rose nearly 90 percent year-on-year and are expected to continue to grow vigorously.
The acquisition of QAPA is consistent with Adecco Group’s Future@Work strategy, elevating exposure to structural growth and toward high-value, technology-led services while reinforcing the strength of the Group’s differentiated ecosystem of talent solutions. France’s market for fully digital workforce solutions has grown eight-fold in the past couple of years to approximately EUR 350 million in revenue terms. In acquiring QAPA, Adecco expedites delivery of a distinct and wholly digital solution to customers which will complement the existing omnichannel approach and rich value-added services offering, with resulting customer retention benefits.
The in-house technical expertise, particularly in sourcing and matching, resulting from the addition of QAPA will support the design and upgrade of existing digitalised platforms in Adecco including InFO and Adecco Direct.
The Group anticipates meaningful revenue synergies will be delivered, mainly from leveraging Adecco’s extensive customer network and candidates database, with an initial focus on large customers who prefer to partner with well-established suppliers in France. The acquisition is expected to firmly contribute to the Group’s EBITA margin from 2022, as higher volumes are reached, and to be EVA positive in 2023.
In addition to the initial consideration there is an earn out period through end 2023. The earn out consideration will be paid in four tranches, subject to the achievement of defined revenue and profitability levels. The acquisition is expected to close at end Q3 2021.
On August 5, 2021, the Group announced plans to acquire BPI Group, strengthening LHH’s advisory capabilities in France, and has since signed an agreement to divest its US based Legal Solutions business. When including the initial consideration to acquire QAPA, these three transactions combined are estimated to provide a small net cash inflow to the Group, while accelerating the delivery of the Group’s strategy and financial commitments.