StepStone Acquires i-GRasp

Establishes StepStone's clear market-leadership for European Recruitment Solutions

Careerportal B.V, a subsidiary of StepStone, has acquired i-GRasp, the United Kingdom market leader for e-recruitment solutions. The deal, worth almost €17 million, creates a clear European market leadership position for StepStone Solutions, with a combined client base of over 300 customers and a unique portfolio of proven products.

Since it was founded in 1999, i-GRasp has created a business with more than 130 customers and forecast revenues in excess of €6.5 million for 2005. The combination of i-GRasp's technology and StepStone's proven track record in delivering recruitment solutions across Europe creates a business that leads on technologies, customers and market reach.

i-GRasp's products have been specifically designed for European markets, to take account of local recruiting practices and cultures. The company has offices in the UK and France and its customers include British Airways, LVMH, La Poste, Auchan, Cadbury Schweppes, KPMG, AXA and Pricewaterhouse Coopers, spanning the UK, France, Germany, Luxembourg, Spain, Belgium and the USA.

The fast growing market for online recruitment solutions harnesses the reach of the internet to allow companies to effectively attract, recruit and retain staff, whilst at the same time automating the recruitment processes so that recruiters can work more effectively.

The i-GRasp products complement StepStone's existing portfolio of products and services, which include StepStone EasyCruit with 150 customers, and the unique technology-based interview and selection solutions provided by Obvious Solutions.

"This represents an important further step in the StepStone strategy, and delivers a major advance in the development of our Solutions business. We now have the leading technology portfolio, the broadest customer base and the widest market-reach. This ensures that we can continue with our mission to apply technology to deliver the results that European recruiters need and deserve", said Colin Tenwick, chief executive officer of StepStone.

i-GRasp has a history of innovation, delivering powerful and often unique features to its customers. Examples include online interview scheduling, dynamic screening, temp and contractor management, graduate recruitment, paper application processing and support for international / multilingual recruitment.

Andy Randall, chief executive officer of i-GRasp, said: "Several US companies have shown interest in acquiring our technology but StepStone, the pioneer of online recruitment in Europe, represents the best future for our business and our customers. With StepStone's market strength and coverage across 13 European countries, its strong portfolio of technology and services, and its experience in delivering recruitment solutions, we now have the right platform for the next phase of our development. Our customers will benefit from the accelerating product innovation and market success that StepStone can help us achieve."

Terms of the Transaction
Prior to acquisition, i-GRasp was privately held. 100% of i-GRasp's share capital has been acquired by StepStone, through a subsidiary, for a total value of up to €16.9m dependent on i-GRasp's financial results for 2005. The consideration is made up of a mixture of cash and shares. i-GRasp is cash positive and at acquisition StepStone will acquire a cash balance of €2.7m.

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