This story has been updated from a previous version.
On Assignment Inc., the publicly traded Calabasas staffing firm, said Monday it had agreed to acquire Mid-Wilshire staffing company Creative Circle for $570 million in cash and stock. Another $30 million could be thrown into the pot if certain performance benchmarks were met.
On Assignment, which specializes in fulfilling positions in the technology and life science industries, said the acquisition of Creative Circle, with its focus on digital and artistic positions, would be immediately accretive to its earnings. A Morgan Stanley-affiliated private equity fund previously owned a majority stake in the company. Creative Circle had revenue of about $226 million last year, with a robust Ebitda margin of 21 percent.
“By working together, we can do more for our clients to accelerate their transformation to a digital platform by providing our respective clients with a more complete solution in the technology and digital/creative space,” On Assignment Chief Executive Peter T. Dameris said in a press release announcing the deal.
“On Assignment and Creative Circle share a very similar culture and vision,” Dennis Masel, Creative Circle’s chief operating officer, said in the release. “As we analyzed how best to continue to grow our company, joining On Assignment quickly became the logical choice.”
The deal is expected to close before the end of the second quarter.
Shares of On Assignment were up more than 14 percent to close at $37.61.
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