On Assignment Inc. (NYSE: ASGN) is purchasing Creative Circle LLC for up to $600 million from Morgan Stanley Global Private Equity.
Creative Circle is a digital and creative staffing firm that provides marketing, advertising and creative talent for companies and agencies. In 2014 the company has $226 million in revenue with a 21 percent Ebitda margin.
The purchase price includes $570 million in cash and equity, plus up to $30 million more depending on the company's operating performance.
The buyer is a staffing agency headquartered in Calabasas, California. Creative Circle will become a division of the company, and retain its brand name.
On Assignment is making the acquisition in connection with a $975 million financing commitment from Wells Fargo Bank NA. The new loan includes a $100 million revolving credit facility and $875 million term loan, which will be used to fund the purchase and refinance existing debt.
There have been several recent recruiting deals lately. In March, Korn Ferry (NYSE: KRY) acquired Pivot Leadership, an executive search firm. In June, Artech Information Systems LLC bought professional services firm Vega Consulting LLC.
For more on staffing, especially for private equity firms, see HGGC CEO Rich Lawson Outlines Strategy for Deepening the Bench.