Ridgecrest Advisors’ Client Perficient to Acquire Zeon Solutions
St. Louis – December 18, 2014 – 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 entered into a purchase agreement to acquire the assets of Zeon Solutions Incorporated and its subsidiary, Grand River Interactive LLC, and an Indian affiliate (collectively, “Zeon Solutions”), a $23 million annual services revenue business and IT consulting firm specializing in the development, implementation, integration and support of e-commerce solutions.
Perficient’s current annualized revenues are now approaching $500 million, and the acquisition is expected to be accretive to adjusted earnings per share.
“We are excited to broaden and deepen our commerce expertise with the innovative capabilities Zeon Solutions brings to Perficient,” said Jeffrey Davis, Perficient’s chief executive officer and president. “Additionally, their formidable reputation, customer-centric mentality, strong client roster and demonstrated propensity to consistently grow revenues and profitability ensures a strong cultural fit and compelling opportunities for accelerated growth moving forward.”
“Today’s leading enterprises optimize their customers’ online commerce experiences and drive volume by leveraging sophisticated digital marketing and search engine optimization techniques, along with outstanding user experiences. Zeon Solutions has been well-positioned and succeeding in this dynamic space for many years,” said Ed Hoffman, Perficient’s vice-president of digital experience solutions. “As one of the largest independent Insite Commerce and Magento consultancies in North America, Zeon Solutions’ services extend Perficient’s existing commerce capabilities and enable us to deliver an even broader array of solutions to clients.”
The acquisition of Zeon Solutions:
- Enhances and expands Perficient’s e-commerce, content management, product information management, mobile and digital marketing services and solution expertise;
- Increases Perficient’s geographic footprint, adding U.S. market locations in Milwaukee and Ann Arbor as well as an off-shore delivery center in Nagpur, India;
- Adds nearly 400 consulting, technology, sales and support professionals; and
- Adds client relationships with enterprise customers including BSN Sports, Hickory Farms, HoMedics, Jordan’s Furniture, Steelcase, Walter Kidde, Woodstream Corp., and many others.
Zeon Solutions Chief Executive Officer Rupesh Agrawal joins Perficient in a key leadership role.
“Perficient’s commitment to, and reputation for, delivering excellence is highly regarded across many industries and technology platforms,” said Agrawal. “We are thrilled to join the Perficient team and work to grow and realize success for our customers in new and exciting ways.”
The parties are targeting a closing in early January 2015, subject to customary closing conditions. Total consideration to be paid at closing will be approximately $35.7 million, consisting of approximately $22.3 million in cash and approximately $13.4 million in Perficient common stock (based on the average closing price of Perficient’s common stock on the NASDAQ Global Select Market for the 30 trading days immediately preceding the closing date per the terms of the purchase agreement). The purchase price is subject to a net working capital adjustment and earnings-based contingent consideration of up to approximately $2.8 million, payable in cash and Perficient common stock.
Randy Grigg, managing partner of Ridgecrest Advisors, advised Perficient on the transaction in his capacity as a registered investment banking agent of M&A Securities Group, Inc. “The acquisition of Zeon reaffirms and strengthens Perficient’s leadership role in the commerce consulting marketplace,” said Grigg.
About Perficient
Perficient is a leading information technology and management 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 two offshore locations in 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 Microsoft National Service Provider and Gold Certified Partner; an Oracle Platinum Partner; a Platinum Salesforce.com Cloud Alliance Partner; a TeamTIBCO partner; and an EMC Select Services Team Partner. For more information, visit www.perficient.com.
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:
- 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.
- 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.
- 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.
- 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 M&A Securities Group, Inc. (“MAS”), member FINRA/SiPC; 4151 North Mulberry Drive, Suite 252; Kansas City, MO 64116; 816.888.7920. MAS and Ridgecrest are not affiliated entities.
