AIM-listed recruitment firm Imprint plc has agreed a recommended all shares offer from rival recruiter Hydrogen Group, which values the group at approximately £45.7m.

Imprint, the owner of banking recruitment specialists Morgan McKinley,  has been in talks of a possible acquisition with OPD since June when its subsidiary PSD bought a 5% stake in the business.

But today Imprint’s board has announced it has opted to switch to Hydrogen’s offer, subject to shareholders approval, which means Imprint shareholders will be offered 0.461 Hydrogen shares for each Imprint share. A partial cash alternative is also on the table where each shareholder will be able to elect to receive 110p in cash for each Imprint share.

The terms represent a premium of 41.5% to the closing price of an Imprint Share on 11 October 2007, the day on which Imprint announced that trading in September 2007 had been materially below the Imprint board’s expectations.

As part of the deal, 3i Quoted Private Equity will also make certain equity and convertible debt investments in Hydrogen along with making a recommended partial cash offer to Hydrogen shareholders resulting in the acquisition by 3i of an 18.5% share. 3i QPE will hold between 28.6% and 34.4% of the enlarged share capital following completion of the acquisition and the partial offer.

Commenting on the proposed acquisition, an industry analyst said: “In the present economic climate this is a big bet to be making during a period of great uncertain. The problem is Imprint PE is very low. I can understand the rationale behind the takeover. Imprint are caught in a downward spiral and Imprint managers and shareholders want to resolve this as quickly as possible. The big issue is whether Hydrogen can successfully integrate a business which has been poorly performing for the last two months.”

Imprint shares gained more than 13% after it agreed to be acquired by Hydrogen.