Edgewater Acquires West Coast Business Intelligence Firm
~ California-based Lynx Enhances CPM Offerings ~
Wakefield, MA – September 25, 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 an asset acquisition with Los Angeles-based Lynx Business Intelligence Consulting, Inc. (“Lynx”), a leading provider of professional services for the Corporate Performance Management (“CPM”) / Business Intelligence (“BI”) industry.
The acquisition is expected to:
- Be immediately accretive to earnings;
- Enhance Edgewater’s BI/CPM services expertise and reach;
- Expand Edgewater’s geographical footprint to the West Coast; and
- Be highly leveragable with the Company’s other business service offerings.
“The acquisition of Lynx will expand our Hyperion presence on the West Coast with local talent and enable us to deliver OutlookSoft BI/CPM service capabilities nation-wide. In addition, we see a strategic opportunity to complement Edgewater’s rich Microsoft technology experience with Lynx’s OutlookSoft experience in order to expand our Microsoft-services practice to include a BI component,” stated Shirley Singleton, Chairman, President and Chief Executive Officer of Edgewater.
Headquartered in Los Angeles, CA, Lynx is a leading provider of professional services for the CPM/BI industry. Lynx has delivered services to organizations across various vertical markets including Financial Services/Banking, Consumer Packaged Goods, Entertainment and Retail.
”We are excited about the opportunity to join a leading technology and business consulting organization,” stated Binh Ly, Founder and President of Lynx. “We look forward to playing an integral role in the expansion of Edgewater’s national footprint and their CPM/BI offerings through the addition of our OutlookSoft expertise and our relentless commitment to unparalleled service excellence.”
The acquisition will be accounted for as an asset purchase with Lynx shareholders receiving total upfront consideration of $5.0 million, which includes $3.0 million in cash and approximately $2.0 million worth of Edgewater common stock (based on the average closing price of Edgewater’s common stock for the thirty days immediately preceding the acquisition). The common stock issued in the transaction is subject to a three-year lockup agreement. Additionally, the former Lynx shareholders will have the potential to earn additional cash consideration of up to $0.5 million based on achieving performance-based objectives over a 24-month period following the closing date.
Randy Grigg, Managing Director at DecisionPoint International, served as an advisor to Edgewater on this transaction.