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Kurtzman-MacCarthy Group Acquires XERC Inc.

Posted 6/1/2017

GEE Group Inc. (NYSE MKT: JOB) acquired SNI Companies, a professional staffing and recruitment services provider. Under the terms of the agreement, the Naperville, Ill.-based staffing provider acquired SNI Companies for $86 million; the consideration was comprised of $44.7 million in cash, $28.8 million of GEE convertible preferred stock and $12.5 million of convertible subordinated notes.

The stock is nonvoting and shall be automatically converted into shares of GEE common stock following approval by GEE stockholders.

The deal broadens GEE Group’s service offerings and expands its geographic footprint into Iowa, Louisiana, Minnesota, New Jersey and Pennsylvania.

SNI had approximately $113.5 million in revenue in 2016. It counts 34 offices in 14 states. Led by co-founder and current chairman and CEO Ron Smith, it is included on Staffing Industry Analysts’ list of largest staffing firms in the US. Divisions include Accounting Now, SNI Technology, Legal Now, SNI Financial, Staffing Now, SNI Energy and SNI Certes.

“We are pleased to announce this exciting acquisition that will have a positive impact on our service capabilities and also will add significant revenue and profitability to GEE Group,” said GEE Group Chairman and CEO Derek Dewan. “Ron Smith built an organization that exemplifies the ideal professional staffing company providing a vast array of human capital solutions in a number of areas that are in high demand. We are fortunate that Ron Smith and his senior leadership team bring a dedicated and talented recruiting and sales team to help grow our combined organization. We welcome the entire SNI team to the GEE Group family and are pleased that they will assist the Company in accomplishing its goals.”

SNI is the most recent of GEE Group’s acquisitions. 2015 acquisitions included Scribe Solutions in April, Agile Resources in July, Access Data Consulting in October; it acquired Paladin Consulting Inc. in January 2016.

GEE Group Inc. (NYSE MKT: JOB) acquired SNI Companies, a professional staffing and recruitment services provider. Under the terms of the agreement, the Naperville, Ill.-based staffing provider acquired SNI Companies for $86 million; the consideration was comprised of $44.7 million in cash, $28.8 million of GEE convertible preferred stock and $12.5 million of convertible subordinated notes.

The stock is nonvoting and shall be automatically converted into shares of GEE common stock following approval by GEE stockholders.

The deal broadens GEE Group’s service offerings and expands its geographic footprint into Iowa, Louisiana, Minnesota, New Jersey and Pennsylvania.

SNI had approximately $113.5 million in revenue in 2016. It counts 34 offices in 14 states. Led by co-founder and current chairman and CEO Ron Smith, it is included on Staffing Industry Analysts’ list of largest staffing firms in the US. Divisions include Accounting Now, SNI Technology, Legal Now, SNI Financial, Staffing Now, SNI Energy and SNI Certes.

“We are pleased to announce this exciting acquisition that will have a positive impact on our service capabilities and also will add significant revenue and profitability to GEE Group,” said GEE Group Chairman and CEO Derek Dewan. “Ron Smith built an organization that exemplifies the ideal professional staffing company providing a vast array of human capital solutions in a number of areas that are in high demand. We are fortunate that Ron Smith and his senior leadership team bring a dedicated and talented recruiting and sales team to help grow our combined organization. We welcome the entire SNI team to the GEE Group family and are pleased that they will assist the Company in accomplishing its goals.”

SNI is the most recent of GEE Group’s acquisitions. 2015 acquisitions included Scribe Solutions in April, Agile Resources in July, Access Data Consulting in October; it acquired Paladin Consulting Inc. in January 2016.

The Kurtzman-MacCarthy Corporation (the Corporation) has finalized the acquisition of  XERC Inc.,  a professional Manufacturing and Operations consulting services provider. Under the terms of the agreement, the Corporation has acquired all of XERC Inc.’s assets, shares and minimal operating debt for an undisclosed amount. The acquisition was initiated earlier this year , where an Acquisition Agreement was signed.

The deal broadens Kurtzman-MacCarthy’s Canadian investment portfolio and expands its geographic footprint into Ontario.

“We are pleased to announce this exciting acquisition that will have a positive impact on our Corporation’s capabilities and also will add significant revenue and profitability to our Group,” said Kurtzman-MacCarthy’s spokesperson Vince Martin. “Pedro Alvarez built an organization for the original shareholders that exemplifies the ideal professional Manufacturing and Operations consulting company providing a vastly experienced array of human capital, technical and operational solutions in a number of areas that are in high demand. We are fortunate that Pedro Alvarez and his senior leadership team bring a dedicated and talented consultancy team to help grow our combined organization. We welcome the entire XERC team to the Kurtzman-MacCarthy Corporation family and are pleased that they will assist the company in accomplishing its goals.”

XERC Inc. is the most recent of  Kurtzman-MacCarthy Corporation’s acquisitions.

The Kurtzman-MacCarthy Corporation is committed to helping develop the Canadian Economy, making the country greener, safer, prosperous, healthier, more tolerant, equal and just.

Kurtzman-MacCarthy Corporation - "Investing in a brighter future for all Canadians".  www.kurtzmanmaccarthy.ca

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