On Assignment Inc. said Monday it has agreed to buy another staffing firm, Creative Circle, for $570 million in cash and stock.
Based in Calabasas, On Assignment mainly provides skilled employees to companies looking for temporary workers. The company posted revenue of $1.9 billion last year.
Privately held Creative Circle, based in Los Angeles, specializes in providing workers in the digital, marketing, advertising and creative sectors. Its revenue totaled $226 million last year.
Creative Circle's majority owner is Morgan Stanley Global Private Equity, a private-equity fund that acquired the company from its founders for $230 million in 2012.
On Assignment said the addition of Creative Circle, which will keep its name, means the combined firm "will be able to provide broader staffing services that support its clients as they transform their business models and marketing demands toward digital enterprises."
Investors welcomed the deal. On Assignment's stock soared $4.77 a share, or 14.5%, to $37.61 a share after the announcement.
Under the firms' definitive agreement, On Assignment would pay $540 million in cash and $30 million in stock for Creative Circle.
The companies also said the purchase price could climb to $600 million if certain performance targets are met this year.