SEEK announces takeover of south-east Asian job site JobStreet in $580 million deal

Australian job classifieds site SEEK has announced plans to takeover the online employment businesses of south-east Asian jobs site JobStreet.

As SmartCompany reported in 2008, the SEEK subsidiary SEEK Asia first purchased a 10% stake in JobStreet, and lifted its stake in JobStreet to 21.3% in 2010.

JobStreet is the largest online employment company in the south-east Asian region, according to Forbes.

The latest deal will see JobStreet, which is valued at $580 million, merge with recruitment site JobsDB, with SEEK paying $261 million for a 75% stake in the combined entity.

In a statement to the ASX, SEEK founder Andrew Bassat says the deal will help SEEK grow in Asia.

“This transaction is a continuation of SEEK’s focus in Asia (including China). In the near term, we expect revenue residing in Asia to comprise over 50% of SEEK’s overall revenue which further cements SEEK as a global leader in online employment.”

The takeover is being welcomed by News Corp Australia chief operating officer Peter Tonagh, who will continue to own 12% of SEEK Asia following the deal.

“We strongly support SEEK Asia’s acquisition of JobsStreet’s assets as it will assist SEEK Asia’s growth in key markets, in the fastest growing region in the world.

“As our investment in the REA Group demonstrates, holding the number one position in the digital market place is important to ensuring revenue growth, which in turn allows digital companies to continue to invest and innovate”

The deal is subject to both shareholder and regulatory approval in Singapore.