Staffline has agreed to takeover Avanta Enterprise in a £65.5m deal

Staffline, a rapidly growing recruitment company with headquarters in Nottingham, has agreed to takeover Avanta Enterprise in a deal worth £65.5 million. It is also aiming to raise £16m through the placing of two million shares at £8 each.

Avanta provides welfare-to-work and skills training services across the UK. It currently employs about 600 staff operating through 43 sites with revenue of £70m.

Chief executive, Andy Hogarth, said that the transaction represented a "new and exciting chapter" in the ongoing development of the business.

"Welfare to Work has become an important growth driver for the company and the opportunity to accelerate and expand our ongoing activities signals a significant step change for Staffline.

"The combination of Avanta and EOS, our top performing Welfare to Work operation, will create a significant opportunity from which to deliver outstanding service to our clients whilst leveraging the competences and skill sets from our core recruitment services."

Revenue at Staffline climbed past £400m in the year ended 31 December 2013 as the group remained on track to hit its 2017 £1bn sales target.

Staffline said that it expected the deal to "significantly" enhance earnings from day one.

Further information is available here.