Atlantic International Corp. Acquires Circle8 Group, Creating a $1.2 Billion Global Workforce Solutions Platform
Rhea-AI Summary
Atlantic International Corp (Nasdaq: ATLN) completed an all-stock acquisition of Circle8 Group on Jan 23, 2026, creating a diversified global workforce solutions platform with approximately $1.2 billion in unaudited annual revenue. Circle8 generated $780 million in 2025 and is reported to be on track for $1 billion organically in 2026. Circle8 will operate as a wholly owned subsidiary; founder Guus Franke joins Atlantic's board as Executive Chairman while remaining CEO of Circle8. The deal expands Atlantic's European IT capabilities, adds ~12,000 technology professionals, and aims to drive cross-regional revenue and margin expansion.
Positive
- Combined platform of approximately $1.2 billion in annual revenue
- Circle8 reported $780 million revenue in 2025 and is on track for $1 billion in 2026
- Adds ~12,000 technology professionals and European IT staffing scale
- Founder-led continuity: Guus Franke joins Atlantic board as Executive Chairman
Negative
- Transaction completed as an all-stock deal, which may result in shareholder dilution
Market Reaction
Following this news, ATLN has declined 15.20%, reflecting a significant negative market reaction. Argus tracked a trough of -4.9% from its starting point during tracking. Our momentum scanner has triggered 22 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $3.18. This price movement has removed approximately $33M from the company's valuation. Trading volume is exceptionally heavy at 7.8x the average, suggesting significant selling pressure.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
ATLN gained 4.75% while peers showed mixed moves: TBI (+2.59%), MHH (+1.07%), KELYA (+2.47%) versus HQI (-0.09%) and BGSF (-4.74%). The momentum scanner did not flag a sector-wide move, pointing to a stock-specific reaction.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 17 | Earnings update | Positive | +0.4% | Reported record Q3 2025 revenue and sharply narrowed year‑to‑date net loss. |
| Oct 06 | Client expansion | Positive | -2.3% | Lyneer’s food production client expanded, lifting expected annual revenue to $12M+. |
| Sep 25 | New contract win | Positive | -14.3% | Lyneer won a logistics contract with up to $17M revenue over 12 months. |
| Sep 15 | Vendor designation | Positive | +4.3% | Selected as premier vendor for logistics client with $15M annual opportunity. |
| Aug 18 | Conference appearance | Neutral | -25.5% | Announced presentation at 2025 Gateway Conference and investor meetings. |
Positive operational and contract wins have produced mixed price reactions, with several instances of divergence between upbeat news and subsequent share performance.
Over the last six months, Atlantic International highlighted contract wins, client expansions, and improving financial performance. In September–October 2025, Lyneer secured logistics and e‑commerce contracts with potential and annual revenue opportunities of $17 million and $15 million. On November 17, 2025, Atlantic reported $315.8 million in nine‑month 2025 service revenue and record Q3 revenue of $110.1 million, with a narrowed net loss. Despite generally positive news, price reactions ranged from modest gains to double‑digit declines, indicating inconsistent response to good news.
Regulatory & Risk Context
Atlantic has an effective mixed shelf registration on Form S-3 filed December 5, 2025, allowing issuance of up to $250,000,000 in various securities. A 424B3 prospectus dated December 15, 2025 reflects usage of this shelf, providing flexibility to fund acquisitions, working capital, debt repayment, capital spending, stock repurchases, or other corporate purposes as described.
Market Pulse Summary
The stock is dropping -15.2% following this news. A negative reaction despite a scale-enhancing acquisition would contrast with the deal’s headline metrics, including a combined $1.2 billion in unaudited revenue and Circle8’s path toward $1 billion in 2026. Past newsflow showed several instances where upbeat operational updates coincided with price declines. The $250,000,000 shelf registration offers capital-raising flexibility, which, depending on market perception of future issuance, could influence sentiment around large transactions.
Key Terms
all-stock transaction financial
form 8-k regulatory
AI-generated analysis. Not financial advice.
European IT Staffing Leader and Official Aston Martin Aramco Formula 1 Team IT Talent Partner Accelerates Atlantic’s Global Growth Strategy
ENGLEWOOD CLIFFS, N.J., Jan. 23, 2026 (GLOBE NEWSWIRE) -- Atlantic International Corp. (Nasdaq: ATLN), a leading provider of strategic staffing and workforce solutions, today announced the acquisition of Circle8 Group. The transaction creates a diversified global workforce solutions platform with
Acquisition Summary
- Creates a diversified global workforce solutions platform with approximately
$1.2 billion (unaudited) in annual revenue - Expands Atlantic’s geographic footprint into key European markets
- Adds high-growth IT and technology staffing capabilities, complementing Atlantic’s North American industrial staffing operations
- Circle8 generated approximately
$780 million (unaudited) in 2025 revenue and is on track to reach$1 billion organically in 2026 - Founder-led continuity and governance alignment, with Circle8 founder Guus Franke joining Atlantic’s Board of Directors as Executive Chairman
Strategic Rationale
- Diversification of revenue and end markets, balancing industrial staffing with higher-margin, higher-growth IT and technology talent solutions
- Expanded multinational customer coverage, enabling cross-regional workforce support for global enterprises
- Enhanced scale and operating leverage, supporting long-term margin expansion and cash flow generation
- Increased revenue visibility, driven by long-term government contracts and blue-chip enterprise customers
- Platform for disciplined future growth, leveraging Circle8’s completed acquisition phase and transition to operational excellence
Circle8 Group, a leading provider of IT talent solutions, operates throughout Europe. The company generated
"This acquisition creates immediate strategic value through complementary capabilities, expanded geographic reach, cross-selling opportunities, and a more balanced and diversified revenue mix," said Jeffrey Jagid, Chief Executive Officer of Atlantic International Corp. "Circle8's exceptional growth trajectory, blue-chip client relationships, and market-leading position in European IT staffing meaningfully advance our strategy to build a scaled, diversified global workforce solutions business. We're not just acquiring a company—we're welcoming a team of proven operators who have built something remarkable in one of the world's most competitive markets."
Guus Franke commented, "Joining Atlantic International represents an exciting new chapter for Circle8. Together, we can offer clients comprehensive workforce solutions across continents and talent categories. By combining our European technology expertise with Atlantic's North American industrial staffing platform, we create a broader, more resilient value proposition for global enterprises."
The combined platform is positioned to unlock meaningful value through expanded geographic reach, broader customer coverage, and cross-selling opportunities. Atlantic, through its Lyneer Staffing Solutions subsidiary, serves clients across food production, manufacturing, and logistics sectors throughout the United States, many of whom are global enterprises with European operations requiring technology talent. Circle8 serves Fortune 500 technology companies, government agencies, and large European corporations, many of which have significant North American footprints. Together, Atlantic can now support workforce needs in both regions and across industrial, IT, and technology talent categories.
Circle8's operational scale and execution track record further strengthen the strategic rationale. Operating through a portfolio of respected brands, the company manages over 12,000 technology professionals and achieved an
Circle8 is successfully executing a disciplined acquisition-led expansion that tripled the company's size over the past four years. In parallel, the company is driving operational excellence and margin optimization across the portfolio by leveraging artificial intelligence, automation, and expanded direct sourcing capabilities.
This acquisition represents a significant milestone in Atlantic’s strategy to build a diversified, multi-billion-dollar workforce solutions platform with increased scale, global relevance, and long-term shareholder value creation. By preserving Circle8's operational autonomy while integrating strategic capabilities, the company creates a comprehensive platform that serves workforce needs across multiple continents and industry verticals.
The acquisition was completed as an all-stock transaction. The Company’s Form 8-K SEC filing will provide additional transaction details.
E.F. Hutton & Co. served as the exclusive M&A advisor in connection with the acquisition.
Forward Looking Statements
This communication contains certain “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this communication that address activities, events or developments that Atlantic or Circle8 Group expect, believes or anticipates will or may occur in the future are forward-looking statements. Words such as “anticipate,” “believe,” “create,” “expect,” “future,” “guidance,” “intend,” “plan,” “potential,” “seek,” “synergies,” “target,” “will,” “would,” similar expressions, and variations or negatives of these words identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the combined Company’s anticipated continued operations and benefits thereof. All such forward-looking statements are based upon current plans, estimates, expectations and ambitions that are subject to risks, uncertainties and assumptions, many of which are beyond the control of Atlantic and Circle8 Group, and that could cause actual results to differ materially from those expressed in such forward-looking statements. These risks and uncertainties, include, but are not limited to, those factors described in Item 1A of Atlantic’s Annual Report on Form 10-K, filed with the SEC on March 28, 2025, and subsequent reports on Forms 10-Q and 8-K.
About Atlantic International Corp.
Atlantic International Corp. (Nasdaq: ATLN) is a leading provider of strategic staffing and workforce solutions. Through its subsidiary Lyneer Staffing Solutions, the company delivers comprehensive staffing services across food production, manufacturing, and logistics sectors nationwide. With the addition of Circle8 Group, Atlantic International extends its capabilities into specialized IT and technology staffing across Europe.
www.atlantic-international.com
About Circle8 Group
Circle8 Group is one of the fastest-growing IT and technology staffing companies, operating across Europe through a portfolio of specialized brands. The company manages over 16,000 technology professionals and specializes in software development, data analytics, cybersecurity, project management, and emerging technologies.
Atlantic International Corp. Investor Contact
Matt Glover and Clay Liolios
Gateway Group, Inc.
949-574-3860
ATLN@gateway-grp.com
www.gateway-grp.com
FAQ
What did Atlantic International (ATLN) acquire on January 23, 2026?
How much revenue did Circle8 generate in 2025 and what is its 2026 target?
What strategic capabilities does the Circle8 acquisition add to ATLN?
Will Circle8 operate independently after the acquisition of ATLN?
How might the all-stock nature of the ATLN acquisition affect shareholders?
