hot group plc, the AIM listed recruitment specialist, has moved into the fast expanding education market with the acquisition of International Teachers Network Ltd (ëITNí), a business specialising in the placement of qualified overseas teachers to schools in the UK. hot is paying initial consideration of 4.4m and uncapped earn-out consideration which is estimated at 1.2m based on the 12 months results to December 31 2004.
Three former teachers, all with considerable experience in the educational recruitment market, established ITN in January 2001 to help combat the chronic shortage of pre-school, primary and secondary teachers in the UK. Initially serving schools in west London, ITN now places teachers throughout the Greater London area and South East England.
The business has grown rapidly since inception, and in the year to December 31 2002 it generated profits of 645,000 on a turnover of 6.4m. It currently employs 15 staff, the majority with former teaching experience, and has two offices in the UK based in London and Cambridge. To facilitate the recruitment of qualified teachers they have established Agents operating in Australia, New Zealand, South Africa and Canada.
ITN founders Mike Clark (Managing Director), Geoff Perkins (Finance Director) and Nick Ward (Australasian Director) are taking 60% of the purchase price in hot group plc New Ordinary Shares and will continue to manage, grow and develop the business in the future.
hot group plc Chairman and Chief Executive Tony Reeves said: ìThis is the third acquisition weíve made in the traditional recruitment marketplace in just under four months, and it is another step forward in the overall growth of the group. The purchase of ITN is in-line with our strategy of expanding the group through the acquisition of businesses in niche sectors. Educational recruitment is a new sector for us to penetrate, but one that we feel offers considerable scope for growth. To complement and further enhance the ITN product offering, we are now looking to acquire other companies, both online and offline, that specialise in similar areas of the marketplace.î
Hot group moves into teacher recruitment market
with the acquisition of International Teachers Network Ltd