Qapa Acquisition: Key Details, Impact, and What Comes Next

Adecco Group's acquisition of QAPA marks a significant step in the digital transformation of workforce solutions. By integrating QAPA's advanced AI and cloud-based technologies, Adecco aims to enhance its digital capabilities and expand its market presence in France. This strategic move is expected to deliver substantial revenue synergies and support Adecco's Future@Work strategy, positioning the company for continued growth in the digital age.

What Is Qapa?

Founded in 2011, Qapa specializes in providing digital staffing solutions through its innovative AI-driven platform. The company offers a range of services including temporary staffing, permanent recruitment, and workforce management. Qapa's unique selling point lies in its advanced matching algorithm, which significantly reduces the time to hire by connecting employers with suitable candidates quickly and efficiently. This technology-driven approach sets Qapa apart in the competitive staffing market.

Who Acquired Qapa?

Adecco is a leading global workforce solutions company, providing comprehensive recruitment and HR services. The company offers a range of key products including temporary and permanent job placements, flexible recruitment solutions, and career development services such as training and upskilling. With operations in 62 countries and 3,800 locations, Adecco serves thousands of clients and places 660,000 people on assignments, underscoring its significant influence and reach in the industry.

When Was Qapa Acquired?

Adecco announced the acquisition of QAPA on September 7, 2021, and completed the transaction by September 29, 2021. This acquisition aligns with Adecco's Future@Work strategy, focusing on enhancing digital capabilities and leveraging QAPA's rapid growth and strong market position. The timing also coincides with broader industry trends towards digital transformation and the increasing demand for technology-led workforce solutions.

Why Was Qapa Acquired?

• Market Expansion: The acquisition of QAPA allows Adecco to broaden its customer offering with a fully digital workforce solution, enhancing its presence in the French market for digital workforce solutions, which has grown significantly in recent years. QAPA's large customer base and significant talent pool will help Adecco strengthen its market position.
• Technology Integration: QAPA's use of advanced technologies such as artificial intelligence and cloud architecture for candidate sourcing, matching, and back-office processing will be integrated into Adecco's existing digital platforms, including InFO and Adecco Direct. This integration aims to accelerate the development and improvement of Adecco's digital capabilities.
• Competitive Advantage: The acquisition provides Adecco with a distinct, wholly digital workforce solution that complements its existing omnichannel and value-added services strategy. This enhances Adecco's technical expertise and supports its digitalization efforts, thereby strengthening its competitive position in the market. Additionally, leveraging Adecco's extensive customer network and candidate database is expected to deliver meaningful revenue synergies and improve customer retention.

Acquisition Terms

• Acquisition Price: €65 million
• Payment Method: The transaction includes an initial consideration of €65 million, with an additional earn-out consideration to be paid in four tranches, subject to achieving defined revenue and profitability levels.
• Key Conditions or Agreements:
  • The acquisition includes an earn-out period through the end of 2023.
  • The earn-out consideration will be paid in four tranches, contingent on achieving specific revenue and profitability targets.
  • The transaction was expected to close at the end of Q3 2021.
  • The acquisition is part of Adecco's Future@Work strategy, aimed at enhancing digital capabilities and providing high-value, technology-led services.
  • The acquisition is expected to be EVA positive by 2023 and contribute to the Group’s EBITA margin from 2022.

Impact on Qapa

The acquisition of QAPA by Adecco has led to significant changes in operations and management. QAPA's digital workforce solutions have been integrated into Adecco's existing operations, enhancing the company's technical expertise in sourcing and matching candidates. The QAPA team has been welcomed into the Adecco Group, indicating potential changes in management structure to incorporate QAPA's leadership and technical teams. This integration aligns with Adecco's Future@Work strategy, focusing on digital transformation and technology-led services.

In terms of product offerings and services, the acquisition has accelerated the delivery of a wholly digital workforce solution to Adecco's customers. QAPA's advanced AI and cloud-based technologies are now part of Adecco's digital platforms, such as InFO and Adecco Direct, providing a state-of-the-art 100% online solution focused on flexible placement. While specific details on employee and customer reactions are limited, the overall sentiment appears positive, with expectations of improved customer retention and satisfaction due to the enhanced digital capabilities.

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