NEW YORK, NY: Recruiter.com Group, Inc. (NASDAQ:RCRT)(NASDAQ:RCRTW) (the “Company”) – Job Mobz, recognized as a global leader in recruitment process outsourcing (“RPO”) and an acclaimed RPO firm for 2022 by HRO Today, has announced a definitive agreement to acquire key intellectual property from the Company. This includes the prestigious domain name Recruiter.com, symbolizing a revolutionary turn in the recruitment sector.
This landmark acquisition amplifies Job Mobz’s existing relationship with the Company, transcending their former strategic partnership that sought to drive revenue growth and streamline operations. The parties believe the acquisition will propel Job Mobz’s calculated plans to expand its market presence and its service portfolio through the integration of the Company’s brand assets.
The acquisition agreement features:
- $1.5M in cash at closing;
- An additional $250K payable within 90 days from closing;
- Shares comprising ten percent (10%) of Job Mobz, a private California corporation that forecasts 2024 revenue in excess of $50 million with net profit margins of approximately 15-20%;
- Quarterly profit sharing expected to begin in Q1 2024; and
- A 3-year services agreement.
In a move to fortify their alliance, the Company and Job Mobz have inked a services agreement, entrusting the Company with the ongoing management of vital technological offerings including the Job Board, Recruiter Marketplace, and Leadership Program. The revenue from these endeavors will be equitably shared after accounting for agreed-upon operating expenses.
Jesse Tinsley, Founder, and CEO of Job Mobz, conveyed his excitement, declaring, “This acquisition heralds a transformative stage in our journey. Integrating Recruiter.com’s esteemed intellectual property, including the iconic domain name, reaffirms our global commitment to delivering innovative recruitment solutions.”
Miles Jennings, CEO of the Company, highlighted the synergy, articulating, “This strategic move sharpens our focus on core, platform-based initiatives. We are confident that Job Mobz will unlock the full potential of the Recruiter.com brand, propelling it to new heights.”
As part of this acquisition, the terms of previous agreements will be adjusted, including the transitioning of certain Recruiter on Demand clients and staff to Job Mobz, in alignment with the fresh agreement.
The parties believe that this significant acquisition will solidify Job Mobz’s position as a dynamic powerhouse in the recruitment industry, reinforcing its reputation as a leading RPO firm worldwide. More than a business transaction, this collaboration symbolizes a strategic realignment poised to redefine the landscape of global recruitment, the parties believe.
Jennings concluded, “Our transaction with Job Mobz is another piece of our strategic realignment and course for the future. We plan for CognoGroup, our planned spin-out of assets from the Company, to develop our business with Job Mobz through our three-year managed service contract and be the recipient of the profit sharing from our equity position. This transaction is a calculated drive toward a leaner, technology-driven company that also creates immediate value. We’re confident that this bold step will help improve our short-term position and create long-term value.”