A4e purchased by Staffline: to merge under Avanta/EOS

Staffline announced the acquisition of A4e on 27th April 2015.

This means that Staffline, which already owns EOS and Avanta, will now hold nine Work Programme prime contracts, the largest number of any company (Ingeus was awarded 7 by DWP).

The employment support companies will be merged into a new brand 'PeoplePlus' over the coming months.

The companies also hold a number of other central and local government contracts related to employment and skills.

Full details are available from the Staffline notice to the London Stock Exchange.

Media: Financial Times (registration reqd)

Later media coverage: London Evening Standard:

Investors in recruitment firm Staffline did not appear to be put off that the company was buying A4e, the scandal-hit training business. A4e earns money for helping unemployed people find a job but came under fire when it received millions from the Government’s work programme despite finding new jobs for only four out of 100 people. Its chairman Emma Harrison, pictured, also a former adviser to David Cameron, resigned from the role in February 2012 following the scandal, but remained the largest shareholder and will cash in around £20 million from the £34.5 million deal. Shares in Staffline jumped 137p to 940p.