Manpower To Acquire IT-Staffing Firm Comsys For $350 Million

Manpower Inc. (MAN) agreed to acquire Comsys IT Partners Inc. (CITP) for nearly $350 million, creating an information-technology staffing concern with total revenue of more than $2.5 billion.

The deal comes amid hopes than the temporary-staffing industry is beginning to rebound as job losses continue to ebb. Temporary hiring is generally a precursor to companies taking on new full-time staff.

The Comsys stock is valued at $17.65 a share, a 33% premium to Monday's closing price. Holders will receive that amount either in cash or Manpower stock. Manpower's payout will be half stock, half cash. Comsys shares haven't traded at $17.65 since the company underwent a 1-for-25 reverse stock split in 2003. As the Internet bubble was building the stock nearly hit a split-adjusted price of $600 in 1998.

The deal is valued at $431 million including assumed debt.

Comsys last month raised its views for the fourth quarter, saying it has benefited from strengthening business.

Manpower will release its fourth-quarter results shortly.

-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354; [e-mail]