CALABASAS, Calif., Feb. 1 /PRNewswire-FirstCall/ -- On Assignment, Inc. (NASDAQ:ASGN) announced that it has closed its acquisition of Oxford Global Resources, Inc. ("Oxford"), a leading provider of high-end information technology and engineering staffing services. The Oxford acquisition provides On Assignment with entry into the large and expanding market for information technology and engineering staffing services. Oxford is expected to generate 2006 revenues of approximately $177 million and higher than industry average bill rates in excess of $100 per hour.
As previously reported, the final purchase price included approximately $190.0 million in cash and $10.0 million in common stock for a total purchase price of $200.0 million. In addition, Oxford shareholders have the opportunity to achieve an earn-out of up to $12.0 million based on Oxford's 2007 and 2008 EBITDA performance. On Assignment utilized its existing cash position and a new $165 million senior secured credit facility that was recently arranged to finance the acquisition. The new facility included a 5 year $20 million revolving credit facility, which will be undrawn at closing, and a 6 year $145 million funded term loan facility. The Company expects to achieve an annual after tax savings of approximately $5 million per year over the next 15 years as a result of the election to classify the Oxford transaction as an asset sale for tax purposes under section 338(h)(10) of the IRS code.
Peter Dameris, President and Chief Executive Officer of On Assignment, said, "This acquisition adds a well-established provider of high end information technology and engineering staffing services, improves our gross margins and bill rates, and diversifies our customer base. Oxford has a 22 year track record as a recruiting driven organization that provides the right professionals for mission critical projects to its diverse client base. With the addition of Michael McGowan and his team, we look forward to maximizing our growth strategy which is focused on strong niche staffing practices with durable business models." About On Assignment On Assignment, Inc. is a diversified professional staffing firm providing flexible and permanent staffing solutions in specialty skills including Laboratory/Scientific, Healthcare, Medical, Financial & Health Information Services, and Information Technology & Engineering. The corporate headquarters is located in Calabasas, California. On Assignment, Inc. was founded in 1985 as On Assignment/Lab Support and went public in 1992. The Company's branch network encompasses approximately 80 branch offices across the United States, the United Kingdom, Ireland, the Netherlands and Belgium. On Assignment, Inc.'s common stock is traded on the NASDAQ Stock Market under the symbol ASGN.
About Oxford Global Resources Oxford Global Resources (http://www.oxfordcorp.com/) is a leading provider of high-end information technology and engineering staffing services. Founded in 1984, Oxford delivers senior information technology, software and hardware engineering, mechanical, electrical and validation engineering and telecommunications engineering professionals to clients in a wide range of industries. Headquartered in Beverly, Massachusetts, Oxford has 20 offices throughout the United States and an office in Ireland to serve the European market.
Safe Harbor Certain statements made in this news release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and involve a high degree of risk and uncertainty. All statements in this release, other than those setting forth strictly historical information, are forward looking statements. Forward-looking statements are not guarantees of future performance, and actual results might differ materially. Factors that could cause or contribute to such differences include actual demand for our services, our ability to attract, train and retain qualified staffing consultants, our ability to remain competitive in obtaining and retaining temporary staffing clients, the availability of qualified temporary nurses and other qualified temporary professionals, management of our growth, continued performance of our enterprise-wide information systems, our ability to successfully make or integrate new acquisitions and other risks detailed from time to time in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2005, as filed with the SEC on March 16, 2006. We specifically disclaim any intention or duty to update any forward-looking statements contained in this news release.
Contact:
On Assignment, Inc. James Brill
Sr. VP and Chief Financial Officer
(818) 878-7900
Investors/Media:
The Ruth Group
Carol Ruth/Jason Rando
(646) 536-7004/7025
(Logo: http://www.newscom.com/cgi-bin/prnh/20041022/LAF035LOGO)
http://www.newscom.com/cgi-bin/prnh/20041022/LAF035LOGO http://photoarchive.ap.org/ DATASOURCE: On Assignment, Inc.
CONTACT: James Brill, Sr. VP and Chief Financial Officer of On Assignment, Inc., +1-818-878-7900, ; or Investors/Media, Carol Ruth, +1-646-536-7004, , or Jason Rando, +1-646-536-7025, , both of The Ruth Group, for On Assignment, Inc.
Web site: http://www.oxfordcorp.com/ Web site: http://www.onassignment.com/
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