Technology recruitment firm Recruit IT last week inked a deal to buy failed Agility Group, expanding its presence in the enterprise market.
Director John Wyatt told Computerworld the sale went through last Tuesday after completion of due diligence.
“It was really a matter of making sure contracts were in place with contractors and clients,” he says. “For the most part they were.”
Wyatt says Recruit IT’s major client base is within IT vendor organisations. The buy gives the company exposure to major corporate user organisations.
“We’ve grown significantly. It puts us on a par with the largest operators in New Zealand in terms of database size and the depth of the candidate base,” he says.
Wyatt says all contracts have been renegotiated in some way. He says this has been well received as Recruit IT offers better payment terms than Agility did, with payment five days after the end of the month.
He would not be drawn on what was found during due diligence or on the cause of Agility’s failure, except to say the recruitment firms that will survive are the ones that “manage their finances closely”.
Wyatt says the overall market is pretty tight as organisations take stock of what’s on the horizon.
That said, there are still significant pockets of activity.
Agility was placed in receivership following a petition from the BNZ on January 28. Shortly after, one Agility contractor told Computerworld he couldn’t understand how the company could have found itself in receivership.
In terms of risk exposure, Agility’s business model was “very low” he said, “since most of the clients paid Agility before Agility was paying contractors”.