Recent HRnetGroup Ltd acquisitions financially looking up

Talent acquisition and flexible staffing firm HRnetGroup Ltd, or HRN, currently coasts operations in 13 cities across Asia including Hong Kong, Indonesia, Singapore, and Thailand. The group has two complementary operating segments -- professional recruitment and flexible staffing -- and serves clients in 30 different sectors.

Since its listing in 2017, HRN has conducted a series of acquisitions. These are meant to build up the group’s presence in key markets as well as ensure it captures a slice of the burgeoning human resources market. Have these acquisitions panned out well for the group thus far? Should investors continue to be patient and hold out for results?

Acquisitions in 2018

Below is a brief summary of the acquisitions HRN made in 2018.

• 12 Feb 2018. Acquired a strategic stake in Glints Intern Pte Ltd for a sum of S$500,000. Glints is a career discovery and development platform for graduates and young professionals in Asia.
• 9 June 2018. Acquired 51% of REForce Shanghai. This is a three-year-old executive search business in Shanghai, Beijing, Guangzhou, and Suzhou. The minimum consideration which HRN needs to pay is at least RMB 16 million in three tranches.
• 2 August 2018. Acquired Career Personnel Limited, a flexible staffing business predominantly serving Hong Kong government agencies. Consideration is HKD 800,000 above the net asset value of the business to be determined on 30 September 2018.

In addition to the above, HRN has also incorporated entities in Malaysia for recruitment and flexible staffing as well as a company in Shenzhen for management consulting and business information provision.

The above acquisitions would provide good support for HRN’s expansion. Glints would be useful as a platform reaching out to young adults looking for jobs, while REForce Shanghai would be able to tap into professional recruitment and staffing in four Chinese cities. Career Personnel is a smart move as government agencies hire a lot of staff, and HRN now has a finger in this pie, too.

Read more here.

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