Recruiter SThree rejects US-based Circle8's takeover bid

Circle8

11/09/2026 13:33

Sept 11 (Reuters) - Recruiter SThree STEMS.L unanimously rejected an unsolicited all-cash takeover approach from U.S.-based Circle8 Group CIRC.O on Friday, saying the proposal significantly undervalues the British company and its future prospects.  
Here are some details:
SThree, which has a market value of £336 million ($453.77 million), said it remains confident in long-term growth prospects for the business. 
Shares in the London-listed firm were down 3.7%.
Under the U.K. Takeover Code, Circle8 must either announce a firm intention to make an offer or walk away by October 7.
British recruiters have been leaning on cost cuts to shore up profits as AI-driven efficiencies weigh on hiring, with firms also increasingly shifting toward shorter-term contracts.
In July, SThree's half-year like-for-like pretax profit fell by three-quarters, as an AI-driven hiring slowdown and the economic impact of the Iran war weighed.
Technology and workforce solutions firm Circle8 said on Thursday its Nasdaq valuation undervalues its potential and the proposed deal would create a nearly $3 billion revenue platform. 
Circle8 did not immediately respond to a Reuters request for comment. 
($1 = 0.7405 pounds)

 (Reporting by Nithyashree R B and Ankita Bora in Bengaluru; Editing by Maju Samuel)
 ((NithyashreeRB@thomsonreuters.com))