Edgewater Acquires Vertical Pitch
~ Accretive Acquisition Will Enhance CPM Offerings ~
Wakefield, MA – December 10, 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 that it has completed an asset acquisition with Colorado-based Vertical Pitch (“Vertical Pitch”), a leading provider of Corporate Performance Management (“CPM”) / Business Intelligence (“BI”) solutions.
The Company believes that acquiring Vertical Pitch achieves the following strategic goals:
- Immediate accretion to earnings;
- Further solidifies Edgewater’s CPM/BI offering expertise and reach;
- Continues the expansion of Edgewater’s national footprint with a Denver office; and
- Leverages future growth opportunities within the Company’s other business service offerings.
Shirley Singleton, the Company’s President and CEO stated, “We are extremely pleased to welcome Dan Gudal and his Vertical Pitch team to the Edgewater family. The acquisition represents another step in our strategic plan to become the leading provider of CPM/BI-related services in the United States.”
Headquartered in Denver, Colorado, Vertical Pitch is a leader in delivering state-of-the art CPM/BI solutions, helping organizations rapidly reach goals by providing greater visibility into financial and operational performance. Vertical Pitch has delivered its services to organizations across various vertical markets including Consumer Packaged Goods, Financial Services, Insurance, Healthcare/Life Sciences and Energy/Utilities, generating approximately $10 million in annualized service revenue in the most recent twelve-month period.
“We are excited about the opportunity to join the Edgewater team,” stated Dan Gudal, Vertical Pitch’s Founder and Chief Executive Officer. “Edgewater has demonstrated its commitment to the CPM/BI market through its recent strategic investments. We fully expect to leverage Edgewater’s existing resources and expertise as a means to enhance and grow Vertical Pitch’s existing business.”
The acquisition will be accounted for as an asset purchase with Vertical Pitch receiving total up front consideration of $20.0 million, which includes $14.0 million in cash and approximately $6.0 million worth of Edgewater common stock (based upon the average closing price of Edgewater’s common stock 30 days immediately preceding the acquisition). The common stock issued in connection with this transaction is subject to lock-up provisions expiring over a three-year period.
Randy Grigg, Managing Director at DecisionPoint International, served as an advisor to Edgewater 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.