Thu, 15 May 2014Recruitment and outsourcing organisation Staffline has agreed to acquire Avanta Enterprise, a provider of welfare to work and skills training services, for £65.45m.

The acquisition will create the UK’s third largest welfare-to-work provider, which will provide complementary scale and cross-selling opportunities to Staffline’s existing onsite operations, according to a company statement from Staffline.

Employing around 600 staff and operating through 43 sites, Avanta delivers revenues of £70m. The acquisition is expected to be significantly earnings enhancing from day one.

Andy Hogarth, chief executive officer at Staffline, said 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.”

Staffline is also looking to raise £16m though the placement of 2m shares at £8 each.