Hays Plc's shares surged in value after the company announced it has agreed to sell its business to private equity firm Meraki Capital. The sale marks a significant development for the recruitment agency, which has been grappling with a tough market. According to the Financial Times, the deal is expected to be completed in the second half of this year.
The sale has been welcomed by investors, with Hays' shares rising 7.5% on the London Stock Exchange. This boost in share value brings the company's market capitalisation to around GBP 1.1 billion. The acquisition by Meraki Capital is seen as a vote of confidence in the recruitment business, with the private equity firm planning to invest in the company's growth.
As part of the deal, Meraki Capital has committed to supporting Hays' long-term strategy, which includes investing in its digital capabilities and expanding its presence in key markets. The company has been navigating a challenging market in recent years, with the COVID-19 pandemic and Brexit uncertainty affecting the recruitment industry.
The sale is expected to have implications for Hays' employees, who will be offered roles within Meraki Capital's portfolio of companies. The private equity firm has a track record of investing in and supporting businesses, and is seen as a positive owner for Hays.
For UK savers and investors, the news is likely to be welcomed as it suggests a positive outlook for the recruitment industry. However, it is essential to seek advice from a qualified financial adviser before making any investment decisions.