Elance And ODesk Combine In Business Merger In California
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Monday, December 23, 2013.
The Internet has quickly become an important component for just about every industry. Companies everywhere are becoming more and more web-based, which has fueled a need for freelancers looking to work remotely or from home. This has prompted the growth of websites designed to connect freelancers to potential employers. Now two of the largest websites, both located in California, have finalized a business merger deal aimed at better connecting employers with freelancers.
The two companies, Elance Inc. and ODesk Corp., are planning to combine into one business entity, which will service 8 million registered users . The current CEO of Elance will lead the newly formed company. The name of the new company has yet to be announced, pending completion of the final details of the business deal. The CEO of ODesk will be kept on as a strategic adviser.
The shift in how people now do business has resulted in a large market for Elance and ODesk. Approximately 20 to 30 percent of the workforce in the United States are freelancers, temporary workers and contractors. Upon completion of the merger, both of the websites will remain intact while the new company will maintain both headquarters locations in California.
When two large industry players like these California web companies combine in a business merger, it can be highly profitable for all those involved. However, it is important that the terms of the legal agreements between the two parties are made clear with properly drafted legal contracts. The correct legal paperwork must also be filed with the appropriate regulatory agencies.
Source: businessweek.com, Elance Merges With ODesk to Enlarge Service for Freelancers (1), Ari Levy, Dec. 18, 2013