SThree gives Circle8 until 18 November to firm up a cash offer

SThree, the London-listed recruiter that calls itself “the global STEM workforce consultancy”, said on 21 October that talks with Nasdaq-listed Circle8 Group about a possible all-cash offer are continuing. The Takeover Panel agreed to a further 28-day extension at the board's request, so Circle8 has until 5.00pm London time on 18 November to announce a firm offer or say it will not bid.

This is the second extension. SThree's board unanimously rejected Circle8's first approach on 11 September, saying it “significantly undervalues SThree and its future prospects”. On 7 October SThree said Circle8 had made a revised proposal for an improved all-cash offer and granted 14 days for limited due diligence and assurances on financing. SThree has disclosed no terms and says there is no certainty an offer will be made.

The talks come as SThree's fees shrink. Net fees fell 2% to £79.2m in the three months to 31 August, after falls of 8% and 6% in the first two quarters. Contract work made up 84% of net fees. The US business grew 11% to £24.9m, while Germany, Austria and Switzerland fell 12%. Timo Lehne, SThree's chief executive, said in the 22 September trading update that SThree was seeing encouraging signs of stabilization, helped by US growth. SThree raised its full-year pre-tax profit guidance to at least £12m from about £10m, but said the outperformance came mainly from working capital efficiencies and other one-off benefits that are not expected to recur.

Circle8 describes itself as an international technology and business transformation platform across North America and Europe. It said it has more than 16,000 professionals and reported more than $1.2bn (£895m) of gross revenue in 2025. It said it would pay in cash, without issuing new Circle8 shares. Guus Franke, its chairman and chief executive, made the case for the deal on 11 September.