IT Staffing M&A: Tandym Group Acquires Metro Systems
Recruitment, contract staffing, consulting, and workforce solutions company Tandym Group has acquired Metro Systems, Inc., a Virginia-based technology staffing firm. Financial terms of the deal were not disclosed.
This is technology M&A deal number 786 that ChannelE2E has covered so far in 2022. See more than 2,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
Tandym Group Acquires Metro Systems
Tandym, founded in 1985 and formerly operating as the Execu|Search Group, is based in New York, New York. The company has 804 employees listed on LinkedIn. Tandym’s areas of expertise include direct hire recruitment, contract/ consulting, and contract-to-hire solutions with specialized teams in healthcare, technology, life sciences and professional services. Tandym is backed by private equity firm Mill Rock Capital.
Metro Systems, founded in 2005, is based in Alexandria, Virginia. The company has 83 employees listed on LinkedIn. Metro Systems’ areas of expertise include IT staffing, IT recruitment, contract, contract-to-hire and direct hire. Metro Systems will become part of Tandym’s technology vertical, Tandym Tech.
The acquisition substantially enhances the scale and scope of Tandym Tech, Tandym’s technology vertical. As a result of the combination with Tandym Group, Metro’s clients will be able to access a much broader suite of services and expanded capabilities, the companies said.
Larry Dolinko, CEO of Tandym Group commented on the news:
“We’re very excited to welcome the Metro Systems team to Tandym. By combining our current service offerings with Metro Systems’ expertise, our total solution is significantly bolstered to serve our client and candidate partners with an even broader array of services. Metro Systems has carried out a 17-year legacy of commitment to client success and unparalleled service that aligns perfectly with Tandym’s mission.”
Kirk Casey and Dave Steinbraker, co-CEOs of Metro Systems stated,
“In choosing the right partner, our most important criterion was finding one who shared our values. Nothing is more important to us than our clients, candidates, and employees. Tandym shares these values and can offer all of our stakeholders a remarkable opportunity for growth.”
Charles Heskett, executive chairman of Tandym Group and senior partner at Mill Rock Capital, added,
“Metro Systems is a highly strategic acquisition, expanding our client base, skillset, and geographic presence. I look forward to welcoming the Metro Systems team and accelerating the growth of our combined platform.”
Alvarez & Marsal Transaction Advisory Group, Lake Partners Strategy Consultants and White & Case LLP advised Tandym Group on the transaction.
IT Staffing M&A Activity
Although IT staffing business valuations are rarely announced, it’s clear that strategic buyers, investors and private equity firms maintain a strong interest in the IT staffing market.
Why’s that? Surely, the talent shortage across cybersecurity, multi-cloud services, robotic process automation, artificial intelligence (AI) and other fast-growth areas generated strong demand for IT staffing firms. Here’s a sampling of the associated M&A deals that ChannelE2E has covered:
19. August 2022: Talent solutions firm Digital Intelligence Systems (DISYS) acquired MAKE Corporation, a professional and IT recruiting firm.
17. May 2022: Vega Consulting, an affiliate of American CyberSystems (ACS), has acquired technology staffing firm Volt Information Services.
16. January 2022: Motion Recruitment Partners, backed by private equity firm Littlejohn & Co., acquired Matrix Resources, an IT staffing company focused on Agile & DevSecOps consulting, and telecom managed services talent.