Key takeaways:
- Korn Ferry closed its roughly $1.1 billion AMS acquisition on September 1, the quarter’s biggest staffing deal, which brings executive search, RPO, and MSP services under one roof.
- Healthcare buyers went after scarce specialties and scheduling technology, from CHG’s move into CRNA staffing to Trusted Health’s purchase of an AI scheduling agent.
- SThree’s board rejected a takeover approach from Circle8, and Circle8 has until October 7 to make a firm offer or walk away.
Q3 buyers paid for what they couldn’t build
SIA’s September forecast projects the U.S. staffing industry will grow 2.4% in 2026 to $183.1 billion, then 2.2% in 2027. That’s a market where organic growth isn’t enough, and Q3 buyers seemed to agree.
The quarter’s deals mostly bought what the acquiring company couldn’t grow fast enough, including a service line, a scarce clinical specialty, a scheduling platform, or a foothold in data center construction.
Private equity stayed in the game as well, but mostly in niches like skilled trades.
Korn Ferry’s $1.1 billion investment in the full talent lifecycle
Korn Ferry announced its agreement to acquire AMS on June 29 for £850 million, or about $1.1 billion in cash and stock. AMS, formerly Alexander Mann Solutions, runs managed service provider (MSP) programs, recruitment process outsourcing (RPO), and campus recruiting. It brings about $650 million in run-rate fee revenue, more than $1.5 billion in remaining contracted revenue, and operations in over 120 countries.
The deal closed on September 1. The combined firm now has nearly 17,000 colleagues in more than 130 offices. OMERS Private Equity, which bought AMS in 2018, was the seller, according to SIA.
SIA’s Matt Norton referred to the deal as a broadening of what Korn Ferry can offer across the talent lifecycle. When an enterprise buyer puts its workforce program out to bid, one of the firms at the table can now bundle board-level search, RPO, and contingent workforce management in a single contract. Mid-size firms chasing those accounts will need to package more services or strengthen specialization.
Healthcare buyers prioritized scarce specialties and scheduling tech
Q2’s signature deal wrapped up early in Q3. Knox Lane completed its acquisition of Cross Country Healthcare and named Joel Tremblay, former president and COO of Medical Solutions, as CEO. Founder Kevin Clark is retiring. SIA reports that All Star Healthcare Solutions, another Knox Lane portfolio company, is taking over Cross Country’s locum tenens division. Knox Lane now runs two healthcare platforms with different specialties.
In August, CHG Healthcare announced the acquisition of KREWE Anesthesia, a New Orleans firm that staffs certified registered nurse anesthetists (CRNAs). KREWE was founded in 2022 and reports about 84% annual clinician retention. CHG, which SIA ranks as the second-largest U.S. healthcare staffing firm, will gain a specialty that’s challenging to recruit for and a managed anesthesia model it can sell to hospital programs.
Care Career picked up MAS Medical Staffing in late July, pushing its annual revenue past $150 million. It’s the company’s seventh acquisition in roughly two years. The highlight of the deal is MAS’s Maestra scheduling platform. SIA reports that 68% of providers on Maestra self-schedule, and 34% of its shifts are completed through direct interaction between client and clinician. That means a third of the shifts happen without a recruiter in the middle.
Trusted Health made a similar move over the summer, acquiring ShiftOS and its “Holly” AI scheduling agent. Holly handles call-offs, shift swaps, time-off requests, and license tracking for hospital workforces ranging from 25 to more than 2,000 employees. Trusted is folding it into Trusted Works, its platform for health systems.
One buyer came from outside the industry. Philips International, a Great Neck, N.Y., real estate firm, entered healthcare staffing by acquiring the Nash Group, a Chicago-area workforce consulting and nurse recruitment firm. Philips says it plans to grow the business with no typical PE exit timeline.
IT buyers sought delivery capability alongside talent
ALKU, which SIA ranks 43rd among the largest U.S. staffing firms,recently acquired Philadelphia-based rockITdata. It’s ALKU’s first acquisition since it bought Holland Square Group in 2017. CEO Andrew Bull said clients want project ownership and the ability to deliver, on top of the talent itself. RockITdata’s AI, data, and healthcare IT consulting work provides that.
CTI Staffing took the rollup route. The Fort Lauderdale firm acquired Boston-based PeopleSERVE, a tech staffing firm founded in 1999, in a deal effective August 21. CEO Jason Silver called it the first in a series and said the industry is “ripe for strategic rollups.”
Outside buyers are paying up for the same capabilities. IT services giant Kyndryl closed its acquisition of Healthcare IT Leaders in September for up to $350 million, including an earnout. The target’s EHR, ERP, and workforce management consulting overlaps with the work that many IT staffing firms bill today.
Skilled trades and data centers pulled in industrial buyers
In August, private equity firm Concord Holdings acquired Paramount Placement, a firm that places HVAC technicians, electricians, plumbers, welders, and CNC machinists. Paramount serves more than 450 customers a year and has made over 5,000 placements in the past decade. Route 2 Capital Partners co-invested.
A few weeks later, VeriWorks, formerly WO Partners, bought LaborWorx from Oakley Services. LaborWorx staffs skilled trades for industrial, construction, and data center projects. The deal gives VeriWorks and its roughly 60 offices a direct line into data center construction.
Aerotek, part of Allegis Group, acquired The PAC Group over the summer. The Troy, Michigan, engineering and program management firm operates in 19 countries. Aerotek launched new facilities management and automation practices alongside it.
Although Kelly didn’t buy anything, it followed the trend. In late September, it combined three businesses it already owned into Kelly Digital Infrastructure, citing salary premiums of up to 74% for critical data center roles. Both acquirers and the largest incumbents are putting their faith in skilled trades demand.
Executive search is crossing borders
ZRG made its third executive search acquisition since April, buying N2Growth’s Spain business to open its first Madrid office. The five-person team starts in financial services and private equity search. CEO Larry Hartmann said Spain offers a bridge between European and Latin American business. ZRG now has more than 700 professionals across 30-plus offices.
Buffkin/Baker made its second deal of the year, acquiring Fortra Search, a firm that recruits sales and revenue leaders for venture-backed companies. It follows Buffkin/Baker’s June purchase of Benson Executive Search.
SThree said no to Circle8, and time’s up on October 7
SThree confirmed in September that it had received an unsolicited approach from Nasdaq-listed Circle8 Group. Two days later, Circle8 laid out its case for an all-cash offer. It reported over $1.2 billion in 2025 gross revenue, against SThree’s £1.3 billion, and said the combination could approach $3 billion.
SThree’s board unanimously rejected the proposal the same day, saying it falls well short of what the company is worth. At the time, SThree carried a market value of about £336 million.
According to Reuters, SThree’s first-half like-for-like pretax profit dropped by 75%, making the timing tricky for its board. Should Circle8 submit a formal bid, shareholders will expect clear numerical justification for claims that the proposal “undervalues” the business.
Under U.K. takeover rules, Circle8 must announce a firm intention to make an offer by 5 p.m. London time on Oct. 7, or walk away.
Q2’s loose ends: TrueBlue’s rebound and Hays’ ongoing review
HireQuest’s rejected $105 million bid for TrueBlue’s PeopleReady business looks tougher to revive after Q3. TrueBlue’s second-quarter results showed PeopleReady revenue up 23% year over year to $262.3 million, with total revenue up 12% to $443 million. A segment that’s growing at that pace is harder to call an underperformer. HireQuest hasn’t announced a new offer.
Hays is still reshaping its map. Its full-year results showed net fees down 7% on a reported basis to £905.5 million, or 8% like for like. Strategic reviews continue in Belgium, Brazil, Greater China, Malaysia, the Netherlands, Singapore, and the UAE. Hays booked an £8 million exceptional loss on the six-country sale to Meraki Capital.
Meraki moved quickly with what it bought, recently launching Tessero, a 130-person brand that unites the six former Hays operations under local leadership.
What to watch in Q4
Circle8’s October 7 deadline comes first. After that, watch Hays’ seven reviews, Care Career’s signed letters of intent, and whether more staffing firms buy the scheduling tools that let clients book talent directly.
If you’re weighing an exit, Q3 checks went to firms with a hard-to-recruit specialty, the ability to own a project, or technology clients use every day. A big bench of recruiters with none of those will have a more challenging conversation with buyers in 2027.
