Comprehensive M&A data with integrated detailed company information
ICF signs deal to pick up ITG
Posted on Tuesday, 14 January 2020 11:51
ICF International has agreed to acquire Incentive Technology Group (ITG) for USD 255.00 million to significantly expand its modernisation services to US federal government clients.
Under the terms of the deal, the buyer will fund the consideration from its existing credit facility and is expecting the net present value of the tax benefit from the transaction to be around USD 33.00 million.
Founded in 2010, ITG claims to be a unique information technology (IT) consulting and modernisation firm, working primarily with federal government agency clients, providing full lifecycle solutions using a broad range of technology platforms.
The business, which has around 350 employees, is the second-largest ServiceNow partner in the public sector and has the largest Appian federal practice in North America.
ITG generated revenue of USD 90.00 million in 2019 and ended the year with a revenue run-rate in excess of USD 100.00 million, according to the press release.
The company’s earnings before interest, taxes, depreciation and amortisation margin in the mid-teens and ICF is expecting its leverage ratio to be less than 2.7 per cent.
Completion is subject to regulatory approvals, among other conditions, and is expected to take place in the first quarter of 2020.
John Wasson, chief executive of ICF, noted: “This transaction is aligned with our strategy to complement organic growth with acquisitions that strengthen ICF's position in key growth areas.”
He added the IT modernisation and cloud federal market is expected to be worth around USD 21.00 billion.
Shares in ICF rose 1.2 per cent to USD 94.30 yesterday, giving the business a market capitalisation of USD 1.77 billion.
This deal represents the largest acquisition for the company since it paid USD 295.00 million for OCO Holdings from KRG Capital Management in November 2014.
© Zephus Ltd