In October 2024, MEGT Australia and gforce employment + recruitment announced the commencement of discussions to explore a potential merger. Both organisations believe that combining their resources would provide strategic benefits and have initiated a due diligence process, aiming for a merger decision by 31 March 2025.
Background of MEGT Australia
Established in 1982, MEGT Australia is a not-for-profit organisation dedicated to supporting employers, apprentices, trainees, job seekers, and students. Originating as a registered Group Training Organisation (GTO) in Melbourne’s eastern suburbs, MEGT has expanded its presence nationwide, with over 650 staff operating from approximately 60 offices across every state.
MEGT offers a range of services, including:
- The Australian Apprenticeship Support Network: Assisting with eligibility determination for government schemes, form completion, and providing advice on training packages.
- Recruitment & Management Services: Employing apprentices and trainees and facilitating their placement with businesses.
- Employment Services: Offering various programs to enhance the careers of job seekers.
Background of gforce employment + recruitment
Founded in 1983, gforce employment + recruitment is a for-purpose community organisation committed to making a difference in the lives of individuals and communities. Based in Geelong, Victoria, gforce serves communities across the region, including Ballarat, Western Melbourne, and South-West Victoria. The organisation employs approximately 60 permanent staff across nine service offices and five outreach locations.
gforce provides comprehensive employment and recruitment services, such as:
- Apprenticeships & Traineeships: Supporting individuals in securing and completing apprenticeships and traineeships.
- Temporary and Permanent Recruitment: Offering staffing solutions to businesses, including labour hire and permanent placements.
- Disability Employment Services: Assisting individuals with disabilities in finding suitable employment opportunities.
Rationale for the Merger
The proposed merger between MEGT and gforce is driven by a shared commitment to better support the needs of individuals, employers, communities, and staff. By combining resources, the organisations anticipate several strategic benefits:
- Enhanced Service Delivery: The merger would allow for a more extensive range of services, leveraging MEGT’s national reach and gforce’s strong community connections in regional Victoria.
- Increased Scale and Investment Capacity: A unified entity would possess greater scale, enabling increased investment in innovative programs and services to meet evolving community needs.
- Strengthened Community Focus: Both organisations have a history of community engagement. The merger aims to maintain local service delivery teams and continue serving clients under the MEGT and gforce identities, ensuring that the unique needs of metropolitan, rural, and regional communities are addressed.
Statements from Leadership
Peter Moore, Chair of MEGT, highlighted the potential benefits of the merger:
“MEGT and gforce are successful organisations that are respected in their communities. Our partnership combines the skills of our great teams who share the passion for helping people, and greater resources to support our innovation and growth. Together we will help even more people and more communities.”
Bill Mithen, Chair of gforce, emphasized the complementary nature of the two organisations:
“MEGT and gforce share a common heritage and commitment to helping people. Through our merger, we will better serve our existing communities and are excited to build new relationships. We look forward to bringing our strong community connections and benefiting from MEGT’s expertise and scale. Our organisations complement each other and share a common focus on serving our communities into the future …
Due Diligence Process and Timeline
Following the announcement in October 2024, both organisations commenced a due diligence process to thoroughly assess the implications and benefits of the proposed merger. This comprehensive evaluation aims to ensure that the merger aligns with the strategic objectives of both entities and serves the best interests of their stakeholders. The organisations have set a target date of 31 March 2025 to reach a merger decision.
Potential Impact on Stakeholders
The merger is anticipated to have several positive outcomes for various stakeholders:
- Job Seekers and Participants: Access to a broader range of employment services and opportunities, benefiting from the combined expertise and networks of both organisations.
- Employers: Enhanced recruitment and workforce solutions, leveraging the expanded talent pool and service offerings of the merged entity.
- Communities: Strengthened community support and engagement, with continued focus on local service delivery and addressing regional employment needs.
- Staff: Opportunities for professional growth and development within a larger organisation, with a shared mission and values.
Conclusion
The discussions between MEGT Australia and gforce employment + recruitment represent a significant step towards creating a more robust and comprehensive employment services provider. By exploring this merger, both organisations demonstrate a commitment to enhancing their capacity to serve individuals, employers, and communities across Australia. As the due diligence process progresses, stakeholders await further updates on the potential formation of a unified entity dedicated to making a meaningful impact in the employment and recruitment sector.
