Japanese Human-Resources Firm Recruit Looks to Buy Freelancer.com; Site Says It Has Generated $1.25 Billion of Work for Users Since 2009
September 10, 2013 Leave a comment
September 10, 2013, 1:53 a.m. ET
Japanese Human-Resources Firm Recruit Looks to Buy Freelancer.com
Site Says It Has Generated $1.25 Billion of Work for Users Since 2009
Recruit Co. Ltd, a Japanese human-resources firm and jobs-site operator, is in talks to acquire Australia’s Freelancer.com for US$400 million, people familiar with the matter said. Closely held Recruit is betting that more companies will outsource work to cut costs at a time of uncertain global economic recovery. The Japanese company has made acquisitions in India and the U.S. over the past year.Sydney-based Freelancer.com, which counts more than eight million users more than 230 countries and regions, matches employers with workers for freelance jobs. It says it has generated US$1.25 billion of work for users since it was founded in 2009, and is increasingly used by small businesses seeking to keep labor costs low.
Australia’s economy is decelerating and unemployment is expected to rise, despite repeated central bank interest-rate cuts meant to encourage companies to invest and consumers to spend. The amount Australian companies plan to invest in their businesses during the current fiscal year, ending next June, is about 11% less than the amount they had planned to invest during the fiscal year that ended this past June, government data show.
The downturn is boosting the market for freelance work as companies look to cut permanent staff. Shares in Australia’s Seek Ltd., SEK.AU -2.91% which advertises part-time and full-time jobs, are up 71% since the start of January, beating the 20% gain of the broader S&P/ASX 200.
Japanese companies have continued to scour the globe for acquisitions to fuel growth outside their stagnant home market—though deal-making has slowed, largely due to a weaker yen that has made overseas purchases more expensive. According to Dealogic, outbound mergers and acquisitions activity by Japanese companies so far this year is down 48% from the year-earlier period, at $30.6 billion.
Recruit a year ago acquired Indeed, which has a presence in 50 countries and pitches itself as the most-visited job site in the world, and last month purchased Indian executive-search firm NuGrid Consulting Private Ltd.
The Japanese company previously flagged interest in an initial public offering to fund global growth. The people said that remains an option.
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