A4e sale - the reactions

Some more reactions have appeared on the sell-off of A4e.  Of the mainstream media, only the Financial Times reports it.  They say that Emma Harrison owned 87% of the company, whereas others say 85% and City AM says 85.5%.  All agree that she gets £20m out of the deal.  All the reports point out that Staffline already owns EOS and Avanta, and will now control a large chunk of the market; City AM says 23%.  The FT says: "The 16 private sector suppliers of the government’s welfare-to-work programme have been engaged in a wave of consolidation as they seek to bolster their position ahead of the next round of contracts in March 2017".  It also says that A4e employs 3,000 people, but the Yorkshire Post says the figure is 2,200.  The newly enlarged company will hold 9 WP contracts, two more than Ingeus (which is now owned by an American company).  No one seems to think this is a problem.
The financial websites naturally focus on the money.  Investor Interactive reports that Staffline's shares "shot up by 18%" on the announcement and is very chirpy about its future profitability.  The Yorkshire Post looks wider.  They do call Harrison an entrepreneur, which I have always maintained is untrue; and they quote the boss of Staffline on why the name A4e will not be retained, unlike that of Avanta.  He says that the A4e brand is "unfortunately too tarnished".  The paper also tries to get a comment from Emma Harrison herself; but when contacted all she would say was "I’m sure you’ve had all the press releases. Thanks for calling, bye."  Charmingly, they add "It is thought that she will devote her time to charity work."  

That's it, then. A4e sold

Yes, it's confirmed (and thanks to my correspondent for the early tip-off).  A4e has been sold to Staffline Group for £34.5m.  The story is here.
Staffline has acquired the entire issued share capital for £23.5m.  That's almost £20m for Emma Harrison, who owned 85% of the shares.  There are more complications, but that's basically it.
Staffline reckons A4e is a "profitable, cash generative business" and the acquisition is good for the company.  Remember that all that cash is straight from the pockets of tax-payers.
A4e's staff have been told by email this morning about the deal.  They now face waiting to hear about their future.  Andrew Dutton and the entire group board will also be looking for work.

Another buy-out in "Welfare to Work" industry

It's only a few weeks since Ingeus was bought by the American company Providence.  Now another w2w provider has been bought out, this time by a British company.  Staffline has bought Avanta for £45m.  It says that Avanta generates £70m, and all of this is in the w2w sector.  The Financial Times says that the providers are "braced for a wave of consolidation as they seek to bolster their position ahead of the next round of contracts in 2016".
So is A4e going to be next?  They were hopeful of going into profit a year ago, and if both Ingeus and Avanta are worth buying because they're making money, why not A4e?  Is the brand too toxic?  Is Emma Harrison too attached to her company to let it go?
All of this could be a problem for the government.  Staffline reckons that the DWP is happy because "they want fewer bigger providers who are easier to manage".  But, as the FT points out, it could well mean that these companies become "too big to fail".