Perficient, Inc. (NASDAQ: PRFT) (“Perficient”), a leading
information technology and management consulting firm serving
Global 2000 and other large enterprise customers throughout North
America, today announced it has entered into a purchase agreement
to acquire the assets of Zeon Solutions Incorporated and its
subsidiary, Grand River Interactive LLC, and an Indian affiliate
(collectively, “Zeon Solutions”), a $23 million annual services
revenue business and IT consulting firm specializing in the
development, implementation, integration and support of e-commerce
solutions.
Perficient’s current annualized revenues are now approaching
$500 million, and the acquisition is expected to be accretive to
adjusted earnings per share.
“We are excited to broaden and deepen our commerce expertise
with the innovative capabilities Zeon Solutions brings to
Perficient,” said Jeffrey Davis, Perficient’s chief executive
officer and president. “Additionally, their formidable reputation,
customer-centric mentality, strong client roster and demonstrated
propensity to consistently grow revenues and profitability ensure a
strong cultural fit and compelling opportunities for accelerated
growth moving forward.”
“Today’s leading enterprises optimize their customers’ online
commerce experiences and drive volume by leveraging sophisticated
digital marketing and search engine optimization techniques, along
with outstanding user experiences. Zeon Solutions has been
well-positioned and succeeding in this dynamic space for many
years,” said Ed Hoffman, Perficient’s vice president of digital
experience solutions. “As one of the largest independent Insite
Commerce and Magento consultancies in North America, Zeon
Solutions’ services extend Perficient’s existing commerce
capabilities and enable us to deliver an even broader array of
solutions to clients.”
The acquisition of Zeon Solutions:
- Enhances and expands Perficient’s
e-commerce, content management, product information management,
mobile and digital marketing services and solution expertise;
- Increases Perficient’s geographic
footprint, adding U.S. market locations in Milwaukee and Ann Arbor
as well as an off-shore delivery center in Nagpur, India;
- Adds nearly 400 consulting, technology,
sales and support professionals; and
- Adds client relationships with
enterprise customers including BSN Sports, Hickory Farms, HoMedics,
Jordan's Furniture, Steelcase, Walter Kidde, Woodstream Corp., and
many others.
Zeon Solutions Chief Executive Officer Rupesh Agrawal joins
Perficient in a key leadership role.
“Perficient’s commitment to, and reputation for, delivering
excellence is highly regarded across many industries and technology
platforms,” said Agrawal. “We are thrilled to join the Perficient
team and work to grow and realize success for our customers in new
and exciting ways.”
The parties are targeting a closing in early January 2015,
subject to customary closing conditions. Total consideration to be
paid at closing will be approximately $35.7 million, consisting of
approximately $22.3 million in cash and approximately $13.4 million
in Perficient common stock (based on the average closing price of
Perficient’s common stock on the NASDAQ Global Select Market for
the 30 trading days immediately preceding the closing date per the
terms of the purchase agreement). The purchase price is subject to
a net working capital adjustment and earnings-based contingent
consideration of up to approximately $2.8 million, payable in cash
and Perficient common stock.
Randy Grigg, managing partner of Ridgecrest Advisors, advised
Perficient on the transaction in his capacity as a registered
investment banking agent of M&A Securities Group, Inc.
About Perficient
Perficient is a leading information technology and management
consulting firm serving Global 2000 and enterprise customers
throughout North America. Perficient’s professionals serve clients
from a network of offices across North America and two offshore
locations in India and China. Perficient helps clients use
Internet-based technologies to improve productivity and
competitiveness; strengthen relationships with customers, suppliers
and partners; and reduce information technology costs. Perficient,
traded on the Nasdaq Global Select Market, is a member of the
Russell 2000® index and the S&P SmallCap 600 index. Perficient
is an award-winning “Premier Level” IBM business partner; a
Microsoft National Service Provider and Gold Certified Partner; an
Oracle Platinum Partner; a Platinum Salesforce.com Cloud Alliance
Partner; a TeamTIBCO partner; and an EMC Select Services Team
Partner. For more information, visit www.perficient.com.
Safe Harbor Statement
Some of the statements contained in this news release that are
not purely historical statements discuss future expectations or
state other forward-looking information related to financial
results and business outlook for 2014. Those statements are subject
to known and unknown risks, uncertainties, and other factors that
could cause the actual results to differ materially from those
contemplated by the statements. The “forward-looking” information
is based on management’s current intent, belief, expectations,
estimates, and projections regarding our company and our industry.
You should be aware that those statements only reflect our
predictions. Actual events or results may differ substantially.
Important factors that could cause our actual results to be
materially different from the forward-looking statements include
(but are not limited to) those disclosed under the heading “Risk
Factors” in our annual report on Form 10-K for the year ended
December 31, 2013 and in our quarterly report on Form 10-Q for the
quarter ended September 30, 2014 and the following:
(1) the occurrence of any event, change or other circumstance
that could give rise to termination of the purchase agreement or a
failure to complete the proposed acquisition due to the inability
of a party to satisfy the conditions to closing the
acquisition;
(2) the possibility that we will not be able to realize the
benefits of the acquisition;
(3) the possibility that our actual results do not meet the
projections and guidance contained in this news release;
(4) the impact of the general economy and economic uncertainty
on our business;
(5) risks associated with the operation of our business
generally, including:
a) client demand for our services and
solutions;
b) maintaining a balance of our supply of
skills and resources with client demand;
c) effectively competing in a highly
competitive market;
d) protecting our clients’ and our data and
information;
e) risks from international operations;
f) obtaining favorable pricing to reflect
services provided;
g) adapting to changes in technologies and
offerings;
h) risk of loss of one or more significant
software vendors; and
i) implementation of our new Enterprise
Resource Planning system;
(6) legal liabilities, including intellectual property
protection and infringement or personally identifiable
information;
(7) risks associated with managing growth organically and
through acquisitions; and
(8) the risks detailed from time to time within our filings with
the Securities and Exchange Commission.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance, or achievements.
This cautionary statement is provided pursuant to Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The forward-looking
statements in this release are made only as of the date hereof and
we undertake no obligation to update publicly any forward-looking
statement for any reason, even if new information becomes available
or other events occur in the future.
PerficientBill Davis, 314-529-3555bill.davis@perficient.com
Perficient (NASDAQ:PRFT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Perficient (NASDAQ:PRFT)
Historical Stock Chart
From Apr 2023 to Apr 2024