Ridgecrest Advisors’ Client Perficient Acquires Northridge Systems
St. Louis – July 2, 2012 – Ridgecrest Advisors announced today that its client, Perficient, Inc. (NASDAQ: PRFT), a leading information technology consulting firm serving Global 2000 and other large enterprise customers throughout North America, has acquired Atlanta-based Northridge Systems , Inc. (“Northridge”), a $12 million annual services revenue business and technology consulting firm focused on collaboration solutions, primarily leveraging the Microsoft SharePoint platform.
The transaction will increase Perficient’s current annualized revenues to approximately $350 million and is expected to be accretive to earnings per share immediately.
“Already one of the largest Microsoft NSIs in the country, we’re pleased to deepen our capabilities even further through the addition of Northridge,” said Jeffrey Davis, Perficient’s chief executive officer and president. “Northridge brings meaningful services expertise, critical mass in the southeastern U.S. and a proven track record of growth, profitability and client satisfaction.”
“With Microsoft’s Worldwide Partner Conference just days away, we’re thrilled to announce this strategic expansion of our Microsoft practice,” said Kathy Henely, Perficient’s chief operating officer. “Northridge excels at delivering collaborative technology solutions that drive workforce productivity and brand experience solutions that drive customer loyalty. We see significant opportunity to leverage their expertise within our existing client base.”
The acquisition of Northridge:
- Increases Perficient’s market presence in the southeastern United States and particularly in Atlanta and Charlotte, key technology markets;
- Adds more than 90 consulting, technology, sales and support professionals; and
- Adds client relationships with enterprise customers including Allstate, Atlanta Gas Light, Bath & Body Works, Chick-fil-A, Duke University, Electrolux, Lowe’s, Meijer, Pacific Life, Time Warner Cable, Victoria’s Secret and many others.
Northridge co-founder and CEO Rob Patten will join Perficient in a key leadership role, reporting directly to Aaron Sloman, general manager of Perficient’s Microsoft National Business Unit.
“Perficient is well known for its expertise across many technology platforms and is widely-regarded as one of the largest and most capable Microsoft systems integrator partners in the country,” said Patten. “Joining the Perficient team accelerates our collective opportunities for continued growth and success.”
The consideration paid in the transaction is approximately $14.4 million and includes $10.6 million in cash and approximately $3.8 million worth of Perficient common stock (based on the average closing price of Perficient’s common stock on the NASDAQ Global Select Market for the thirty trading days immediately preceding the acquisition close per the terms of the acquisition agreement).
Randy Grigg, managing partner of Ridgecrest Advisors, advised Perficient on the transaction in his capacity as a registered investment banking agent of Burch & Company, Inc. “Northridge is a very well-known player in Microsoft consulting circles in the Southeast and the acquisition is a key step in Perficient’s continuing effort to expand its presence in the region,” said Grigg.
Perficient is a leading information technology 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 three offshore locations, in Eastern Europe, 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 TeamTIBCO partner, a Microsoft National Systems Integrator and Gold Certified Partner, an EMC Select Services Team Partner, and an Oracle Platinum Partner.
About Northridge Systems, Inc.
Northridge is a nationally-recognized leader in delivering collaboration solutions to mid-market and enterprise clients throughout North America. By combining vast expertise in the areas of business consulting, user experience, and collaboration technology, Northridge delivers comprehensive collaboration solutions for the Enterprise and Internet that are both highly functional and beautifully creative.
With a focus on delivering a measurable return on investment for each client, Northridge offers a rich portfolio of services including collaboration strategy, portal migration and implementation, dashboards and analytics, user experience and branding, collaborative websites, and custom collaboration solutions.
About Ridgecrest Advisors
Ridgecrest Advisors is an investment banking and business consulting firm dedicated to helping technology consulting firms dramatically increase enterprise value. Ridgecrest Advisors helps clients in four core areas:
1. Buy-side M&A advisory: We help technology consulting clients increase enterprise value by successfully executing transactions which fortify, extend or transform their businesses. We have run three of the most active acquisition programs in the sector over the last 15 years and bring deep insight into full lifecycle M&A efforts.
2. Sell-side M&A advisory: We help technology consulting clients achieve premium valuations with attractive deal structures through a process that emphasizes speed and risk mitigation. Our deep industry expertise, expansive relationships with the buyer community and unmatched understanding of the perspectives of acquiring firms provide a unique ability to execute optimal transactions.
3. Business consulting: Our Enterprise Value Optimization program helps technology consulting clients improve relative performance visibility, increase profit margins and reduce business risk. With our extensive experience from evaluating hundreds of consultancies while running acquisition programs, we bring unique insight into key performance indicator benchmarks and best practices of highly profitable firms.
4. Private placements: Our ability to successfully raise capital allows our technology consulting clients to build value through funded strategic investment and reduce personal financial risk by realizing partial liquidity on their ownership positions. We have extensive relationships with private equity and debt financing providers who have experience and/or interest in the technology consulting sector.
All services involving securities are offered through Burch & Company, Inc., member FINRA/SiPC; 4151 North Mulberry Drive, Suite 235; Kansas City, MO 64116; 816.842.4660. Burch and Ridgecrest are not affiliated entities.