Toronto, Ontario – Deal sets stage for growth in expanding staffing services market.
CNC Global Limited, Canada's leading provider of IT staffing services announced today that it has completed a deal to transfer majority ownership of the company to Canadian–based private equity fund, TorQuest Partners Inc. Scotiabank Private Equity Investments, the corporate venture investment arm of Scotiabank Group also participated in the transaction.
As a result, CNC Global has gained a flexible capital structure, as well as access to additional equity and expertise from one of the country's premier private equity firms.
"We're excited about this development," said Lyle Kerr, CNC Global's Chief Executive Officer. "It gives us the backing we need to take advantage of growing opportunities in the Canadian staffing market. It also enables us to build on our long history of providing innovative staffing solutions to Canada's leading employers."
The demand for IT resources continues to expand in lock step with the economy. In Toronto alone, IT firms generate $32 billion in annual revenues and employ 148,000 workers at 3,330 facilities.
Eric Berke, a Partner at TorQuest, voiced his enthusiasm over the deal. "Our strategy is to partner with extraordinary management teams in established businesses with significant growth potential. We see CNC Global as a market leader with the ability to leverage our support and capitalize on current opportunities that exist in the Canadian staffing industry."
"Under the new ownership structure," added Kerr, "CNC Global's management team will remain intact and there will be no changes in the relationships we have built up with our partner vendors and customers."
The financial terms of the deal were not disclosed.
About CNC Global Limited
CNC Global Limited is Canada's leading provider of IT staffing solutions. Since 1981, it has worked with employers across the country to develop and implement strategies that improve new hire quality, streamline recruitment processes and contain the costs associated with resource management. CNC Global services include the sourcing of IT professionals for full time and contract positions, contractor administration, payroll administration, vendor management, recruitment advertising and HR communications. CNC Global is recognized as one of Canada's 700 largest corporations and ranks 10th in Branham's list of the country's "Top Professional Services Companies". In 2003, CNC Global earned a Canadian Information Productivity Award (CIPA) for its Connect Suite of staffing solutions. In 2004, it was named Canada's Top Small-Medium Employer in a joint study by Queen's School of Business and Hewitt Associates.
About TorQuest Partners Inc.
TorQuest Partners Inc. is a Canadian-based manager of private equity funds. Its TorQuest Partners Value Fund, L.P., with a capitalization of over $180 million, is pursuing investments in middle and later stage companies. The fund's stated objective is to invest in meaningful positions in established businesses. TorQuest takes a leadership role in developing these businesses, helping to create and implement value-creation and growth strategies.