JOB News & Events

GEE Group announced that it has engaged Roth Capital as its financial advisor to assist the company in reviewing and developing responses to unsolicited expressions of interest received and to consider other strategic alternatives available to GEE Group and its shareholders. GEE Group has previously disclosed that it received unsolicited expressions of interest from various parties and these opportunities have been initially reviewed by the company's board of directors, and more specifically, its M&A Committee. Roth will help further evaluate and prepare responses. They will also assist the board in evaluating these expressions of interest and other strategic alternatives available to the company. Derek Dewan, chairman and EO of GEE Group, commented, "As we stated in our recent press release, the Company intends to privately and formally respond to interested parties. In accordance with its fiduciary duties, the Board of Directors of GEE Group and its M&A Committee will consider any bona fide offer regarding a business combination, acquisition, or other transaction that it believes will enhance shareholder value. Our decision to engage Roth Capital Partners as the Company's financial advisor was addressed at our February Board of Directors meeting and represents the next important step towards this end."

GEE Group announced that, effective January 3, it has acquired Hornet Staffing an Atlanta-based provider of staff augmentation services with national service capability. Hornet provides staffing solutions to many markets serving large scale, "blue chip" companies in the information technology professional and customer service staffing verticals. The acquisition is expected to be accretive to earnings and generate solid adjusted earnings before interest, taxes, depreciation and amortization . Under the terms of the sale and purchase agreement, GEE Group acquired 100% of the Hornet common stock for consideration including cash and seller financing. Other terms of the transaction were not disclosed. Larry Bruce, Managing Director and Founder, will continue in his current capacity at Hornet and join the GEE Group National Sales Team to work with and assist all of the Company's vertical leaders with new business development. Mr. Dewan, added, "We are pleased to announce this exciting acquisition that will be accretive to earnings and generate solid non-GAAP adjusted EBITDA as well broaden our service capability, particularly to the Fortune 1000 and other large organizations. The acquisition fits within our strategic growth strategy, which includes making prudent investments to fuel both organic and acquisition growth. The Company has a strong balance sheet with a current ratio of 3.8 and substantial liquidity resources, both in cash and borrowing capacity. We will continue to seek acquisitions that fit our criteria and to deploy GEE Group's capital judiciously, with the primary objective of maximizing shareholder value."