Headhunter.net
to Merge With CareerMosaic; Merger Solidifies Headhunter's No.
2 Position in On-Line Recruiting Market
ATLANTA--(BUSINESS
WIRE)--April 17, 2000--Headhunter.net, Inc. (NASDAQ/NM:HHNT) today
announced that it signed a definitive agreement to merge with
CareerMosaic,
a leading on-line national recruiting service. The combination
of Headhunter.net and CareerMosaic will create the second largest
on-line recruiting service based on revenues, traffic, users,
customers and job listings. CareerMosaic is a subsidiary of Omnicom
Group Inc. (NYSE:OMC).
Under
the terms of the agreement, Headhunter.net
will issue approximately 7.5 million shares for CareerMosaic's
assets, representing approximately 40% of Headhunter.net's fully
diluted shares after the merger. The merger is subject to certain
conditions, including regulatory approvals and approval by Headhunter.net's
shareholders. The merger is expected to close in the third quarter.
Robert
M. Montgomery, President and Chief Executive Officer of Headhunter.net,
stated, "The merger with CareerMosaic
will create strong value for job seekers and employers by creating
a major destination employment hub on the Internet with over 250,000
job postings, 450,000 resumes, and over 7.0 million visitors per
month. We are very excited to join forces with Omnicom. Their
experience in growing Internet businesses and vast global reach
are strong additions to our team."
John
Wren, Chief Executive Officer and President of Omnicom
Group Inc., commented, "The merger will create a clear
leader in the on-line recruiting market. Another subsidiary of
Omnicom, Bernard Hodes Group, launched CareerMosaic
in 1994 and has been very successful in establishing a major presence
in the on-line market. The combined strengths of Headhunter.net
and CareerMosaic will accelerate opportunities to expand market
share in this fast growing area and build economic value. Our
investment in HeadHunter.net becomes an important strategic addition
to our growing portfolio of digital companies in our Communicade
division."
Bernard
Hodes, President of Bernard Hodes Group, the largest recruitment
advertising agency in the U.S., will join Headhunter.net's Board
of Directors upon closing of the transaction. Mr. Hodes said,
"We are excited about the combination of CareerMosaic and Headhunter.net
to increase our share of the rapidly growing on-line market for
jobs. We expect to be a major customer of the combined operation
in providing our customers with the clear value leader in the
on-line recruiting market."
Mr.
Montgomery continued, "The combination will significantly expand
our growth potential by broadening our markets beyond Headhunter.net's
focus on small businesses, the middle market and recruiters. CareerMosaic's
customer base includes a strong presence in the Fortune 1000,
agency, college and international markets. In addition, our users
will benefit from the additional content of our combined sites
since less than 10% of our users overlap based on recent industry
data.
"Our
number one goal will be maximizing customer value through the
combined operations. We plan to quickly integrate the two companies
and build a single identity going forward. We believe our company
will benefit from economies of scale in operations, marketing
and advertising to enhance future performance.
"We
will have a single brand with a sales team focused on the combined
entity and product offerings. Following the combination, we will
have one of the largest direct sales forces in the industry with
offices expanding into 15 major markets. We believe the leverage
in sales, marketing and advertising will be important in accelerating
our growth in the on-line recruiting market," concluded Mr. Montgomery.
About
Headhunter.net
Headhunter.net
is a leading national on-line recruiting service that specializes
in empowering candidates and corporations to manage the job search
process. Headhunter.net has more than 3 million users each month.
The site has more than 130,000 job listings posted and over 350,000
resumes. More than 8,000 companies and recruiters post open positions
in over 120 job categories.
About
Omnicom Group Inc.
Omnicom
Group Inc. (NYSE:OMC) (www.omnicomgroup.com),
the leading marketing communications company in the world, consists
of advertising agency networks BBDO Worldwide, DDB Worldwide and
TBWA Worldwide. The group also includes Goodby, Silverstein &
Partners; Diversified Agency Services (DAS), which operates a
number of leading, independently branded companies in marketing
services and specialty communications; Omnicom Media Group, which
includes two leading international media buying and planning agencies,
OMD and PhD; and Communicade, which manages significant investments
in leading internet and digital media development companies.
Some
of the preceding statements in this press release constitute "forward-looking
statements" within the meaning of the Securities Act of 1933,
as amended, and the Securities Exchange Act of 1934, as amended,
and the Company intends that such forward-looking statements be
subject to the safe harbors created thereby. Examples of words
indicating forward-looking statements include "believes," "expects"
and "will." These forward-looking statements reflect the Company's
current views with respect to future events and financial performance,
but are subject to many uncertainties and factors relating to
the Company's operations and business environment which may cause
the actual results of the Company to be materially different from
any future results expressed or implied by such forward-looking
statements. Please see Headhunter.net's Form 10-K, as amended,
for a list of such uncertainties and factors. The Company undertakes
no obligation to update or revise any forward-looking statement
whether as a result of new information, future events, or otherwise.
CONTACT:
Headhunter.net
Mark Partin, 770/349-2410 [email protected] or
Corporate Communications
J. Gil Fuqua Jr., 615/254-3376 [email protected]
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