Edgewater Acquires Alecian Corporation
~ Strategic Acquisition Extends CPM Offering ~
Wakefield, MA – July 2, 2007 – 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 completed a strategic acquisition of Fairfield County, CT-based Alecian Corporation’s (“Alecian”) business, which specializes in the implementation of Corporate Performance Management (“CPM”) solutions.
The acquisition is expected to:
- Be immediately accretive to earnings;
- Enhance Edgewater’s CPM offerings;
- Strengthen the delivery of financial management solutions;
- Provide additional scale to our national CPM/BI practice; and
- Be highly leveragable with Company’s other business offerings.
“We are delighted to welcome Alecian to the Edgewater organization and their strategic capability to our CPM suite of services,” stated Shirley Singleton, President and Chief Executive Officer of Edgewater. “Alecian has highly-valued expertise in delivering CPM solutions which enable CFOs to monitor enterprise-wide Sarbanes Oxley compliance and results across the enterprise. Alecian’s niche practice further enhances our current CPM offering and provides additional cross-selling opportunities within our Business Consulting and Technology Consulting offerings.”
Headquartered in Fairfield County, CT, Alecian is a strategic technology and business consulting firm that has delivered its services to such organizations as Autonation; Sara Lee; Goldman Sachs and Johnson Controls. Alecian specializes in delivering financial management solutions that assist organizations in making strategic and operational decisions within today’s stringent reporting regulations.
“We’re excited to be joining the Edgewater organization,” stated Kevin Burns, CEO of Alecian. “By combining our expertise in CPM with Edgewater, we can further assist organizations in the development of effective, integrated financial management solutions enabling them to report critical financial data in a dynamic and consolidated manner.”
The acquisition will be accounted for as an asset purchase, with Alecian shareholders receiving consideration of $0.5 million in upfront cash and having the potential to earn additional cash consideration based on achieving performance objectives over a 12 month period. The acquisition is expected to contribute approximately $1.5 million in annualized revenue and is expected to be immediately accretive to earnings.
Randy Grigg, Managing Director at DecisionPoint International, served as an advisor to Edgewater Technology on this transaction.