Staffing firm On Assignment Inc. has closed its acquisition of Creative Circle LLC, a digital marketing and advertising staffing company, in a deal valued at $570 million.
The Los Angeles company will become a division of On Assignment, in Calabasas, and continue to operate under its own brand name. The deal, originally announced in May, closed on Friday.
On Assignment will finance the purchase with $540 million in cash and $30 million in shares of its common stock. An additional $30 million will be paid if certain performance targets are achieved this year.
The $540 million in cash came from a $975 million credit facility On Assignment entered into for the acquisition and to repay existing loans.
Chief Executive Peter Dameris said the acquisition will contribute to a goal of $3 billion in revenue for On Assignment by 2018.
“With the addition of Creative Circle, On Assignment will be able to provide a broader range of staffing services to our clients as their business models and marketing demands focus on digital solutions,” Dameris said in a prepared statement.
Privately held Creative Circle will add expertise in digital marketing, advertising, and graphic design workers to On Assignment’s portfolio of information technology and engineering professionals. It had revenue of about $226 million last year and has posted compounded annual growth of 26 percent for the last three years.
Shares of On Assignment closed up 6 cents, or a fraction of a percent, to $38.03 on the New York Stock Exchange.