PR90889

ZURICH, July 28, 2021 /PRNewswire=KYODO JBN/ --

HIGHLIGHTS

- Adecco Group to acquire AKKA Technologies and combine the business with Modis

to create the global #2 in the engineering R&D market, a powerful platform to

drive future Smart Industry leadership

- Transaction consideration of EUR2.0 billion of Enterprise Value, equivalent

10.6x EV/EBITDA 2022e[1]

- Accelerates Adecco Group's Future@Work strategic implementation toward

high-value, technology-led services in less-cyclical markets, while reinforcing

the strength of Adecco Group's unique solutions ecosystem; the three Global

Business Units will be recognised market leaders

- Combined, AKKA Technologies and Modis will have scale, through 50,000

engineering and digital experts with deep cross-sector expertise, a global

footprint, balanced industry profile, and strongholds in higher growth sectors

such as mobility and software & technology services

- AKKA Technologies and Modis will offer larger scale and scope for career

growth and development for team members of both companies

- New business will have extensive capabilities in innovative technologies, as

well as a differentiated end-to-end service offering, enhancing AKKA

Technologies and Modis' ability to capture accelerating demand for Smart

Industry

- Strong value creation opportunity that elevates Adecco Group's exposure to

structural growth markets, enhances margins and improves the quality and

resilience of earnings, while providing greater opportunities for AKKA

Technologies and its engineers as part of Adecco Group's ecosystem

- Revenue synergies in excess of EUR200 million and cost synergies of EUR65

million identified

- Margin and EPS accretive in year one[2], EVA positive in year three

Closing of first stage of transaction to be followed by Mandatory Tender Offer

in Belgium and France for remaining AKKA Technologies securities

- Closing expected in H1 2022, subject to regulatory approvals

- Mr Jan Gupta appointed President-elect of combined business. Mr Mauro Ricci

to be appointed as Special Advisor to the CEO of the Adecco Group and Mr

Jean-Franck Ricci to be appointed as Chairman of the Customer Advisory Board of

the AKKA Technologies & Modis combined business

"We are very pleased to announce today that AKKA Technologies and Modis will

come together in a landmark transaction. Alongside our Workforce and Talent

Solutions global pillars, we are creating a global market leader in technology

and digital engineering. The combined business will be a trusted partner to the

world's leading companies, with an ability to capture the accelerating demand

for digital transformation through its Smart Industry focus," said Alain

Dehaze, CEO of Adecco Group.

"By combining AKKA Technologies and Modis, we are delivering a step-change

moment in our Future@Work strategy. This is a compelling investment in a higher

growth, higher margin business that has more predictable and resilient earnings

and will create significant value for all stakeholders."  

He added: "The two businesses strongly complement one another, united by a

shared passion for technology and talent and a dynamic, entrepreneurial

culture. We also see potential for the Adecco Group's ecosystem to provide

exciting new opportunities for AKKA Technologies and its team of engineers,

with an enhanced ability to combine technology solutions with workforce and

talent solutions as part of a truly unique service offering for our customers."

Mauro Ricci, Chairman and CEO of AKKA Technologies said: "Today marks a turning

point in AKKA's history as we announce the creation of the number 2 global

player in the Smart Industry, through combining with Modis. The innovation that

our customers need is a never-ending story, and we must constantly evolve and

invest in new technologies and in new skills to remain a valuable and long-term

partner. While the engineering industry keeps changing, and its consolidation

has not been completed yet, I am convinced that Modis is the ideal partner to

write this new chapter in our history, together."

He added: "The addition of leading-edge digital engineering skills combined

with our deep expertise in the engineering of the full product life-cycle that

we have acquired working with our blue-chip clients for decades will create

value for all our stakeholders. This opens up exciting opportunities for our

engineers, who will access a larger playing field to continue to innovate

alongside our customers and keep expressing their passion for technologies."

"This is a milestone day and major leap forward in our mission to be a leading

enabler of Smart Industry, which is where IT and engineering technologies

converge into a digital and connected world. We look forward to joining forces

with AKKA Technologies, combining their excellent market reputation in

engineering with Modis' strong digital experience. Together we will provide

cutting-edge high-tech solutions through highly experienced engineers and

digital experts," said Jan Gupta, President of Modis.

"United, we will be a global engineering and digital solutions powerhouse, one

that is a well-positioned and trusted partner worldwide, able to meet

accelerating demand from customers who are facing technological disruptions and

who need our services and skills to scale their transformation. We have the

joint ambition to lead the market and to be in the forefront of accelerating

innovation and time to market for our customers and partners. Together, we will

engineer a smarter future."

FULL PRESS RELEASE ENGLISH (https://www.adecco-jobs.com/-/media/project/adeccogroup/pdf-files/smart-industry/adecco-group-akka-and-modis-press-release-eng.pdf/)

FULL PRESS RELEASE FRENCH (https://www.adecco-jobs.com/-/media/project/adeccogroup/pdf-files/smart-industry/adecco-group-akka-and-modis-press-release-fr.pdf/)

Contact Details:

The Adecco Group

Investor Relations

+41 (0)44 878 88 88

[1] Enterprise Value assuming 100% equity acquired for EUR 1.5 bn and including

reported net debt as at end June 2021 and excluding the ODIRNANE, which is

equity accounted under IFRS (EUR 175 mn, first call in 2025). Multiple based on

consensus estimates. Source: Societe Generale.

[2] Excluding one-time integration and implementation costs.

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SOURCE: Adecco Group