HeadHunter Group PLC Signs Agreement to Acquire LLC

MOSCOW, Nov. 24, 2020 (GLOBE NEWSWIRE) -- HeadHunter Group PLC (Nasdaq: HHR, MOEX: HHRU) (HeadHunter or the a??Companya??) announces today that it has entered into a sale and purchase agreement to acquire LLC (a??Zarplataa??), an online recruitment platform operating in Russia.
On November 24, 2020, HeadHunter entered into a sale and purchase agreement to acquire 100% of the issued charter capital of LLC (a??Zarplataa??) from Hearst Shkulev Digital Regional Network B.V. for a total purchase price of a? 1/2 3.5 billion in cash subject to customary price adjustments at closing as well as limited post-closing escrow arrangements (a??Acquisitiona??). The Federal Antimonopoly Service of Russia (a??FASa??) has approved the Acquisition and completion is expected to occur by the end of January 2021, subject to customary closing conditions.Transaction RationaleZarplata is a job classified platform with a strong footprint in certain Russian regions, such as Siberia and the Urals. It was formed by consolidating local city portals, which has created high local brand recognition and means that Zarplata has a significant share of organic traffic. Revenue generated by Zarplata in its key regions is comparable with HeadHuntera??s revenue in those geographies. In 2019, Zarplata generated total revenue of a? 1/2 854 million according to Zarplataa??s unaudited non-IFRS internal data. Based on the Companya??s diligence of Zarplata to date, the Company has concluded that Zarplataa??s revenue recognition policy is similar to IFRS, however there can be no assurance that this policy was applied consistently in historical periods.The Company believes the Acquisition will accelerate HeadHuntera??s development in key strategic areas such as increasing penetration in the Russian Regions and outreach to blue collars and SMAs.
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