On Assignment, a diversified professional staffing firm based in Calabasas, US, says it has signed a letter of intent and exclusivity agreement to acquire a clinical research (CR) staffing company that operates in western Europe.
The unnamed company is projected to bring in revenues of around US$24 million and adjusted earnings before interest, taxes, depreciation and amortisation (EBIDTA) of US$4 million for the twelve month period ending 31 December 2010.
The proposed cash payment for the clinical research staffing operation at closing is about US$17 million. The transaction also has a two-year earn-out component.
“This company has margins that are consistent with our Life Science staffing business, long-term assignments and high bill rates,” said Peter Dameris, president and chief executive officer of On Assignment, adding that the deal “should be nicely accretive to our earnings”.
On Assignment hopes to close the transaction within the next 45 days, subject to the execution of final documents and lender approval.