GEE Group Inc. ( JOB ) shares are surging premarket on Monday after the company acquired Hornet Staffing, Inc., a provider of IT, professional, and customer service staffing solutions for large-scale clients, for an undisclosed amount.

GEE Group ( JOB ) purchased 100% of Hornet’s common stock through a combination of cash and seller financing.

The Hornet acquisition boosts GEE Group’s ability to win contracts with Fortune 1000 companies and large users of contingent labor.

The acquisition, effective January 3, 2025, is expected to be earnings accretive and boost adjusted EBITDA.

Hornet’s expertise in managed service providers (MSPs) and vendor management systems (VMS) strengthens GEE’s position in the $222 billion global MSP/VMS market, where 58% of large companies rely on third-party firms to manage staffing providers, according to Staffing Industry Analysts (SIA).

According to SIA, offshore recruiting can cut operational costs by up to 70% and reduce hiring timelines by up to 40%, leveraging global talent pools and 24/7 recruitment efforts.

GEE Group ( JOB ) plans to integrate Hornet’s offshore capabilities across its staffing verticals while maintaining its onshore recruitment for select clients, enhancing flexibility, scalability, and efficiency in large enterprise engagements.

Chairman and Chief Executive Officer of GEE Group Inc. ( JOB ), Derek Dewan, said, “We are pleased to announce this exciting acquisition that will be accretive to earnings and generate solid non-GAAP adjusted EBITDA as well broaden our service capability, particularly to the Fortune 1000 and other large organizations.”

“The acquisition fits within our strategic growth strategy, which includes making prudent investments to fuel both organic and acquisition growth. The Company has a strong balance sheet with a current ratio of 3.8 and substantial liquidity resources, both in cash and borrowing capacity.”

Price Action: JOB shares are up 12.8% at $0.2448 premarket at the last check Monday.

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