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AWF Madison buys IT recruitment firm

NZN 18/10/2016 Sophie Boot

AWF Madison Group, the country's largest contract labour company, has bought IT recruitment group Absolute IT for $15.3 million.

Absolute IT had revenue of about $65m in the year to March 2016, AWF said.

The purchase price comprises an initial payment of $11.1m and an earnout of $4.2m tied to Absolute IT's earnings in the year to November 2017.

The ICT recruitment market is expected to grow strongly, AWF chief executive Simon Bennett said.

"Many organisations, both within the public and private sectors, are looking to update legacy systems and bring their organisations up to speed with the current climate," Mr Bennett said. "In the private sector in particular, digital capability and data driven business intelligence are increasingly essential for building sales and maintaining competitive edge."

Absolute will keep its directors and manager and will retain its brand while back-office functions are integrated with AWF's.

The deal is debt-funded, requiring no shareholder approval.

The shares last traded at $2.38, and have gained 3.5 per cent this year.

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