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Staffing industry M&A transactions up 28% in 2017, SIA report finds

March 29, 2018

Robust staffing merger and acquisition activity in 2017 included 88 publicly announced transactions in North America, an increase of 28% over the previous year, according to Staffing Industry Analysts’ report, Staffing Merger & Acquisitions: 2018 Update. The 88 staffing firm transactions announced in 2017 represents the second-highest annual deal volume over the past decade.

Acquisition targets were most frequently found within professional staffing segments, led by healthcare and IT staffing firms, comprising 21% and 15% respectively.

“The secular tailwinds fueling growth in the staffing industry are increasingly attracting private equity investment,” said Senior Research Analyst Brian Wallins. “A larger pool of potential acquirers should provide support for takeout multiples in the current environment.”

SIA counted at least 12 publicly announced M&A transactions in 2017 involving a staffing firm headquartered in North America and a private equity firm. Ten of the 12 transactions involved staffing firms primarily active within professional staffing segments, and healthcare lead all segments in private equity deals with four transactions.

SIA corporate members can access the report online. It includes an updated Merger and Acquisitions Database Tool, which contains a database of mergers and acquisitions related to companies in the staffing and workforce solutions industry. The database contains information collected on 847 transactions that occurred between January 2014 through December 2017.

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