Seek Shares Gain $800 Million On News Of Asian Expansion

Seek CEO Andrew Bassat in a DÅ«cere Global Leaders Faculty video / Vimeo

Jobs listing site Seek closed up 17.8% today after it reported record half-year growth and plans to buy parts of Asian rival JobStreet for $374 million.

Shares reached an all-time high today and closed at $15.70, adding more than $800 million to Seek’s market cap, while the ASX200 stayed roughly flat.

Seek credited its Seek Education and Seek International business arms for driving today’s record half-year revenue growth of 37% to $380.7 million.

Seek International contributed $134.3 million of revenue in the six month period to December, up 56% while Seek Domestic revenues from Australia and New Zealand fell 3% to $116.9.

Co-founder and CEO Andrew Bassat told investors today that the company now reached about 2.5 billion people through stakes in jobs listings sites in Mexico, Brazil, China, Africa and South East Asia:

That 2.5 billion person estimate includes JobStreet, of which Seek’s majority owned subsidiary Seek Asia owns 22% and is looking to buy 100%.

The $374 million deal values JobStreet at a total of $580 million and is subject to approval from Singaporean regulators and JobStreet shareholders.

“This transaction is a continuation of Seek’s focus in Asia, including China,” Bassat said.

“In the near term, we expect revenue residing in Asia to comprise over 50% of Seek’s overall revenue, which further cements Seek as a global leader in online employment.”

Seek expects to settle the JobStreet acquisition by the mid-year, with CIMB and Goldman Sachs as financial advisors, Baker & McKenzie and SBA Law as legal advisors and PwC as accounting and tax advisor to Seek.

Via, here’s Seek’s share price so far this year:

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