Humanforce Moves Forward with Final All-Cash Offer for LiveHire

November 25, 2024 11:45 AM AEDT | By Team Kalkine Media

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Humanforce Moves Forward with Final All-Cash Offer for LiveHire — Image source: shutterstock

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Highlights

Humanforce advances with an unconditional cash offer for LiveHire.

The offer price reflects a significant premium to recent market values.

LiveHire director endorses the proposal, marking it as final and best.

Unlisted Australian company Humanforce Holdings has strengthened its bid for recruitment platform LiveHire (ASX:LVH) through an all-cash offer. Humanforce already holds a significant stake of over 87% in LiveHire, equating to approximately 408.3 million shares. The company initiated its on-market bid to acquire the remaining equity at $0.045 per share in August.

Humanforce has confirmed that it will immediately begin purchasing LiveHire shares on the market. Once it secures 90% ownership, it plans to proceed with compulsory acquisition, paving the way for LiveHire’s delisting from the Australian Securities Exchange.

Director’s Support for the Proposal

LiveHire director Andrew Rutherford has recommended shareholders accept Humanforce’s offer. According to Mr. Rutherford, this proposal represents Humanforce's final and best bid. The offer price includes a premium of 15.38% compared to LiveHire's entitlement offer completed on 21 November. Additionally, it reflects premiums of over 62% and 52% against the seven-day and 14-day volume-weighted average prices, respectively. The $0.045 per share offer also marks a significant uplift from LiveHire’s $0.027 closing price on 22 November.

Mr. Rutherford highlighted that shareholders who decline the offer might remain minority holders in a company dominated by Humanforce, with limited liquidity options.

Humanforce’s Growth Objectives

Established in 2002, Humanforce specializes in workforce management solutions through its software-as-a-service (SaaS) platform. The company operates subsidiaries across Australia, New Zealand, Singapore, and the UK. Humanforce, backed by US private equity firm Accel-KKR Growth Capital Partners, has expressed confidence in scaling LiveHire profitably under its ownership.

Accel-KKR managing director Joe Porten emphasized the strategic value of this acquisition. He noted that combining LiveHire’s AI-powered talent solutions with Humanforce’s existing capabilities would enhance productivity and efficiency for flexible and frontline workforces.

Future Implications

The proposed acquisition of LiveHire by Humanforce aligns with its broader objectives to expand and innovate in workforce management. With the director’s endorsement and an unconditional cash offer, this move represents a key development in the SaaS and recruitment sectors.

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