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Perficient Expands Portfolio with EGG Acquisition
[July 21, 2006]

Perficient Expands Portfolio with EGG Acquisition


TMCnet Contributing Editor
 
Perficient, an information technology consulting firm, has announced that it has acquired the Energy, Government and General Business (EGG) division of Digital Consulting & Software Services, Inc., a systems integrations consulting business with roughly $17 million in annual revenues.


 
With more than 925 consulting, technology, sales and support professionals in 15 offices in the US and Canada, Perficient expects the transaction to increase annualized revenues to greater than $170 million. The acquisition is expected to be accretive to earnings per share immediately.

 
According to Jack McDonald, Perficient’s chairman and chief executive officer, this acquisition adds a top-tier client roster as well as the company’s first offices in the Southeast while also increasing the size and scope of local operations in Houston. Additionally, the acquisition opens substantial opportunities in the energy vertical, for which the IT spending outlook is strong.
 
Jeff Davis, Perficient’s president and chief operating officer contributed that leveraging Perficient’s full suite of business-driven technology solutions and services across an expanding base of local offices and loyal, long-term clients is at the heart of the company’s growth strategy and this transaction supports that effort. EGG is also a Microsoft (News - Alert) Gold Certified Partner and this adds to Perficient’s already deep expertise in Microsoft-based solutions.

As a result of the acquisition of EGG, Perficient will immediately increase its ability to deliver business-driven technology solutions to the market; add more than 100 consulting, technology, sales and support professionals; expand its national footprint into the Southeast; and add client relationships with enterprise customers such as Shell, Cox Communications and the US Navy, to name a few.

Rick Donnelly, executive vice president of EGG contributed that his company is thrilled to join the success story at Perficient and begin introducing their broader portfolio of solutions and services to EGG clients.
 
Donnelley also noted that he sees tremendous cross-selling opportunities emerging over the course of the next several years. Donnelly is expected to join Perficient in a key leadership role, serving as Senior General Manager.
 
Under the terms of the agreement, Perficient will pay approximately $12.9 million, excluding transactions costs, with $6.4 million in cash and roughly $6.5 million in Perficient common stock.

Perficient is on a path for expansion with this acquisition representing the third this year and the eight since 2004. The company is gaining significant portfolios and market share through its acquisitions to build a formidable force against the competition.
 
EGG brings with it a strong consulting base and revenues that will expand Perficient’s offerings and better position the company to respond fully to the needs of its customers. This market also represents significant growth that will bode well for the company in the future.

Susan J. Campbell is a contributing editor for TMC and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.
 
 
 

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