The GO2 People is set to acquire Perth-based recruitment company Hunter Executive Search Consultants under an all-scrip deal worth $900,000.
GO2 expects Hunter to contribute revenue of about $3.3 million per annum for the company.
Shares in GO2 surged 36 per cent on the news to trade at 4.5 cents, as at 10:15am AEST.
The combined group will offer a full suite of recruitment services, with GO2 to focus on blue collar labour hire and Hunter to introduce its white collar permanent and contract recruitment.
Messrs Oakley and McNally will join the GO2 executive team and maintain their roles as principal consultants within the Hunter business, while GO2 intends to appoint an additional independent non-executive director before June 30.
GO2 managing director Billy Ferreira said the acquisition was in line with the company’s strategic growth plan.
“Importantly, it remains within our core specialisation of recruitment and we look forward to accessing the synergies which will drive organic growth in the future,” he said.
“We’ve indicated our intent to grow the business whilst continuing to focus on cash generation and profitability above all else and, on the back of consolidation of the company in FY20, this is another step in the right direction.”
GO2 will issue 30 million shares worth $900,000 to Hunter, which could receive further shares based on its operating profit for the current financial year.
The deal is subject to GO2 shareholder approval, to be sought at a general meeting on February 12.
GO2 shares dropped back to 3.6 cents, but were up 9 per cent on Friday's close.