Edgewater Acquires National Decision Systems
~ Acquisition expands premium services portfolio ~
Wakefield, MA – February 15, 2006 – A technology management consulting firm specializing in providing premium IT services, Edgewater Technology, Inc. (NASDAQ: EDGW, www.edgewater.com, “Edgewater” or the “Company”), today announced it has acquired National Decision Systems, Inc. (“NDS”), a Stamford, CT-based firm specializing in strategic business process consulting.
The acquisition is expected to:
- Add approximately $12 million in annualized service revenue;
- Be immediately accretive;
- Add 41 in billable headcount;
- Expand Edgewater’s Program Management Office (“PMO”), Business Process Improvement, and Project Management offerings;
- Bring new offerings such as Merger and Acquisition Consulting and Research Advisory Services enabling organizations to optimize assets for additional revenue opportunities;
- Strengthen Edgewater’s vertical expertise in areas such as Hospitality, Consumer Packaged Goods and Financial Services; and
- Provide a strong gateway into the New York/New Jersey market.
“We are delighted to welcome NDS to the Edgewater organization,” stated Shirley Singleton, President and Chief Executive Officer of Edgewater Technology, Inc. “We believe that this is a great cultural fit and will strengthen our premium services portfolio.”
Headquartered in Stamford, CT, NDS is a strategic business process consulting firm that has delivered its services to such organizations as AARP, The J.M. Smucker Company, Sotheby’s, Oppenheimer, The Blackstone Group, and News America Marketing, a division of News Corp.
“We’re excited to become part of the Edgewater organization. We are impressed with management’s strategic vision of premium IT services and we look forward to contributing to the growth of the Company,” stated Rich Foudy, President of NDS.
The acquisition will be accounted for as a stock purchase, with NDS shareholders receiving consideration of $8.5 million in upfront cash and assumed liabilities, along with 264,610 shares of Edgewater common stock, which are subject to a three-year lockup agreement. Former NDS shareholders will have the potential to earn additional cash and stock based on achieving performance objectives over a 24 month period.
Randy Grigg, Managing Director with DecisionPoint International, served as an advisor to Edgewater Technology on this transaction.
About Edgewater Technology, Inc.
Edgewater Technology, Inc. is an innovative technology management consulting firm. We provide a unique blend of premium IT services by leveraging our proven industry expertise in strategy, technology and corporate performance management. Headquartered in Wakefield, MA, we go to market by vertical industry and provide our clients with a wide range of business and technology offerings. To learn more, visit www.edgewater.com or call 800-410-4014.