SThree gives Circle8 until Oct. 21 to firm up revised bid
- Circle8 made a revised all-cash proposal for SThree on Oct. 7.
- SThree extended the takeover deadline to 5 p.m. London time on Oct. 21.
- SThree’s board rejected Circle8’s first approach on Sept. 11.
- SThree generated about £1.3 billion ($1.8 billion) in FY2025 gross revenue.
LONDON, UNITED KINGDOM — Circle8 Group has two more weeks to turn its pursuit of London-listed SThree into a firm offer, after returning with an improved all-cash proposal. SThree’s board, which rejected Circle8’s first approach in September, has agreed to push the takeover deadline to 5 p.m. London time on Oct. 21.
A revised proposal
Circle8 made the revised proposal on Oct. 7, the day its original deadline was due to expire, SThree said in a stock exchange announcement. The proposal remains subject to confirmatory due diligence, confirmation of financing and agreement of definitive transaction documents, and the announcement gave no price.
The board requested, and the Takeover Panel agreed to, a 14-day extension so Circle8 can carry out limited due diligence and provide assurances around its financing structure and deliverability. The board wants to assess whether an acceptable proposal can be tabled on terms it would be minded to recommend. By Oct. 21, Circle8 must either announce a firm intention to make an offer or say it does not intend to bid.
From rejection to talks
SThree’s board unanimously rejected Circle8’s first approach on Sept. 11, saying it significantly undervalued the company and its future prospects. Nasdaq-listed Circle8 has said a combination would take the technology platform it built in Europe to global scale, adding SThree’s specialist brands in technology, engineering and science. Circle8 says it serves more than 500 enterprise and government clients.
SThree generated about £1.3 billion ($1.8 billion) in gross revenue in its financial year ended Nov. 30, 2025, according to Circle8, which reported more than $1.2 billion in gross revenue in 2025 and over 16,000 professionals. “This is not about becoming bigger for the sake of size,” Circle8 chairman and CEO Guus Franke said in September.
Circle8 has said it would finance a deal in cash without issuing new shares, and that the combined group’s gross revenue could approach $3 billion. There is no certainty that a firm offer will be made, SThree said.
For clients of both firms, a combined group would bring IT and technology talent supply under one larger owner. Buyers relying on staff augmentation or a specialist staffing agency for technical roles should watch for any firm offer by Oct. 21 and review change-of-control terms in their contracts. Firms comparing providers can benchmark them against the top BPO companies worldwide.
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