Staffing 360 Solutions, Inc. (NASDAQ:STAF) shares surged on Monday after the company disclosed a definitive agreement under which Atlantic International Corp. (OTC:ATLN) will acquire all outstanding shares of Staffing’s common stock valued at ~$25 million.

As per the deal, Staffing 360 shareholders are set to receive 1.202 shares of Atlantic for each share they hold.

Upon completion of the acquisition, Atlantic and Staffing 360 shareholders will own approximately 90% and 10% of the fully diluted combined company, respectively.

The transaction is anticipated to be finalized within the next 90 days, pending approval from Staffing 360’s shareholders and other standard closing conditions, including regulatory approval.  

Once completed, Staffing 360 will operate as a wholly-owned subsidiary of Atlantic, maintaining its current leadership team and brand.

Shareholders will receive information about the record date and the date for the special meeting to vote on the transaction in the coming days.

With a combined pro-forma revenue base of approximately $620 million, shareholders of Atlantic and Staffing is expected to benefit from the enhanced scale, liquidity, and capital opportunities presented by the larger merged company.

Atlantic’s CEO Jeffrey Jagid said, “The merger provides a unique opportunity to increase our business by approximately 50 percent to an annualized revenue run rate of approximately $620 million and allows us to become an even bigger force in the broad staffing sector.”

Brendan Flood, Staffing 360’s CEO, stated, “Building on complementary footprints and shared values, our combined company will be even better positioned to deliver enhanced levels of service to a growing number of companies throughout the United States whose management teams recognize the value of outsourcing and the trends toward engaging flexible workforces.”

Price Action: STAF shares are up 52.9% at $2.60 at the last check Monday.

Image via Unsplash

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This article Staffing 360 Solutions Soars On $25M Buyout Deal With Atlantic: Details originally appeared on Benzinga.com

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