Staffing Firm Kelly Services Acquires Softworld
Staffing provider Kelly Services has announced the acquisition of Softworld, a technology staffing and workforce solutions firm from Waltham, Massachusetts. Terms of the acquisition were not disclosed.
This is technology M&A deal number 251 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
In 2020, Softworld generated more than $100 million in revenue, according to Kelly. Softworld will continue to operate under its own brand, the company said.
In 2021, the market for temporary IT staffing in the U.S. is projected to reach $31.7 billion, Kelly said, making it the largest professional staffing segment. Softworld is focused on highly specialized occupations that are projected to grow at a rapid pace, Kelly said. It’s that focus that led to top-line growth for the company and seems to have attracted Kelly in the first place.
Softworld will be added to the portfolio of Kelly Science, Engineering and Technology, the company said. The division provides contract and direct-hire staffing, business process outsourcing, and managed service provider solutions to a variety of industries.
Kelly Acquires Softworld: “The Disruptive Forces Of A Remote Workforce”
Peter Quigley, president and chief executive officer of Kelly, commented on the deal:
“Through the acquisition of Softworld, Kelly adds to its portfolio a business with a consistent track record of growth whose deep expertise in technology complements the company’s focus on fast-growing, high-margin specialties. Softworld’s high-performance culture, underpinned by a talent-first mindset and an unwavering commitment to client satisfaction, make it a natural fit within Kelly.”
Hugo Malan, president, Kelly Science, Engineering and Technology, said:
“The disruptive forces of a remote workforce and emerging technologies – artificial intelligence, machine learning, predictive analytics, and others – are driving increased investment in digital transformations. As a result, demand for talent with the specialized skill sets required to design and implement these initiatives has never been greater. The addition of Softworld to Kelly Science, Engineering and Technology’s portfolio significantly expands the scale, specialty capabilities, and solution set of our technology business, positioning Kelly to capitalize on this opportunity and fulfill clients’ end-to-end technology requirements.”
David S. Teitelman, president of Softworld, added:
“We are excited to begin a new chapter in Softworld’s history as part of the Kelly team. Kelly’s leadership in the workforce solutions industry, its storied brand, and the relationships it has forged with many of the world’s leading organizations – combined with Softworld’s deep technical and industry expertise, world-class recruiting engine, and comprehensive suite of workforce solutions – will empower our collective team to unlock tremendous growth opportunities and deliver considerable value to talent and clients alike.”
In 2020, Kelly Services’ revenue was $4.5 billion. In that same year, the company placed nearly 370,000 individuals in positions around the globe.
In 2019, the company sold off its legal division, Kelly Legal Managed Services, to Trustpoint.One for an undisclosed sum.