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CTG acquires SOFT COMPANY – Transaction valued at $16.5 million

CTG (Computer Task Group), an IT services provider based in Buffalo, has acquired SOFT COMPANY, a consulting and digital services company headquartered in Paris, France. According to CTG, the all-cash transaction is valued at $16.5 million, not including potential future earnouts, for SOFT COMPANY’s approximately $30 million in annualized revenue and approximately $3.5 million of cash and cash equivalents as of December 31, 2017. The acquisition gives CTG a dedicated presence in France, while strengthening their  portfolio of services at the same time. 

“The acquisition of SOFT COMPANY is a significant milestone in CTG’s growth strategy as it expands our portfolio of services and opens up an important new and growing market in France,” said Bud Crumlish, CTG President and CEO. “More specifically, this transaction broadens CTG’s strong existing market positions in Belgium and Luxemburg, while providing us with increased scale and offerings to serve a highly diverse group of European clients. The combined organization will also benefit from the ability to leverage the outstanding reputations of each company as we continue to deliver exceptional service that addresses our clients’ business and technology challenges. We are pleased and excited to have Soft Company join our group of companies.”

Highlights of the transaction include:

  • Adds approximately $30 million in annualized revenue
  • Extends established European presence into the growing $40 billion IT services market in France
  • Offers significant cross-selling opportunities across combined client base
  • Expands existing offerings with highly complementary services and value-add solutions, including business intelligence and analytics, as well as mobile application development
  • Enhances growth and margin expansion opportunities with greater scale
  • Expected to be immediately accretive to operating margin and earnings per share, excluding customary acquisition-related expenses

“CTG’s European expansion into the French market through this acquisition supports our vision of being a significant IT services provider in all of Europe,” said Filip Gydé, Senior Vice President and General Manager of CTG Europe. “We know that it is not enough to only remain in a position of strength in our current markets, but we must also look to expand to larger markets which we currently do not serve. As our European business continues to grow, it was strategically important to find a partner in France that shared our vision and could provide additional services to help our clients navigate the digital world.”

SOFT COMPANY will operate as a subsidiary of CTG Europe. The company will be led by the current SOFT COMPANY management team of Moïse Torjmane, Léon Levy, and Serge Saada.

CTG currently employs approximately 800 people in Western Europe and 3,250 company-wide.

In a joint statement, the leadership of SOFT COMPANY stated, “We are thrilled to take the next step in the evolution of our company and join CTG. Our combined organizations and shared vision will benefit all of our clients and team members, and we look forward to further helping to grow both the business and the reputation of CTG in Europe. We wanted to become part of an organization that values and provides growth opportunities for every team member.”

Written by Buffalo Rising

Buffalo Rising

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