Edgewater Acquires Zero2Ten

Ridgecrest Advisors’ Client Edgewater Acquires Zero2Ten

St. Louis – March 16, 2015 – Ridgecrest Advisors announced today that its client, Edgewater Technology, Inc. (“Edgewater”)(NASDAQ: EDGW), a leading consulting firm that brings a blend of classic and product-based consulting services to its clients, has acquired Georgia-based Zero2Ten, Inc. (“Zero2Ten”), an award-winning Microsoft Dynamics CRM partner.

Zero2Ten will join Edgewater Fullscope, a wholly-owned subsidiary of Edgewater and leading provider of Microsoft Dynamics AX ERP and CRM solutions and services, to offer easy to use, innovative Microsoft solutions and cloud-based services to manufacturers of all sizes. The acquisition was completed after the close of business on March 13, 2015. Zero2Ten’s operating results will be combined with those of Edgewater’s beginning on March 16, 2015.

Known as one of the first organizations to embrace Microsoft Dynamics CRM’s move to the cloud, Zero2Ten has been recognized as a CRM online market leader and innovator since its inception. Such recognitions include:

  • 2014 Microsoft Dynamics Cloud Partner of the Year
  • 2014 Winner of Two Customer Excellence CRM Awards
  • 2013 Microsoft UK Partner of the Year finalist
  • 2012 Microsoft Dynamics Cloud Partner of the Year
  • 2011 Microsoft Dynamics Cloud Partner of the Year

“With Zero2Ten, Edgewater Fullscope will have one of our strongest Microsoft Dynamics manufacturing offerings, providing customers with a strategic path that is aligned with Microsoft’s vision for business applications in the cloud,” said Neil Holloway, Corporate Vice President, Sales, Microsoft Dynamics.  “This move creates exciting short- and long-term opportunities for Microsoft, the new extended Edgewater Fullscope team, and our current and prospective manufacturing customers by providing a complete Microsoft Dynamics solution — one that is ready to bring customers into the future.”

A leading Microsoft Dynamics CRM Partner with over 800 clients worldwide, Zero2Ten has combined a unique customer engagement lifecycle with a rapid deployment methodology featuring a structured adoption and continual learning offering for its customers. Zero2Ten focuses on manufacturers and offers several options, including strategic intellectual property (IP) offerings and hosted services and licenses, to help them mitigate the risks often associated with typical CRM projects.

“Combining Zero2Ten with Edgewater Fullscope will help build critical mass in the evolving Microsoft Dynamics partner channel, as well as speed our delivery of cloud-based offerings to the manufacturing market,” said Edgewater Fullscope Senior Vice President Russell Smith. “We are excited about Zero2Ten’s innovative approach to minimize risk and simplify CRM Online projects, and we look forward to leveraging a similar strategy in other areas of our Microsoft practice. When you combine an award-winning CRM Cloud partner and award-winning ERP partner, the result is clearly a winning situation for our customers, employees, partners and investors.”

“We are excited about the opportunity to join forces with Edgewater Fullscope,” stated Paul Colella, CEO of Zero2Ten. “By bringing together two of the most respected organizations in the Microsoft Dynamics partner community, our combined team can provide truly integrated solutions that leverage the entire Microsoft stack. In addition, our shared commitment to leverage the power of Microsoft Dynamics solutions to manufacturers makes this a natural fit. We look forward to further expanding Microsoft’s cloud-based services and solutions to bring value to our manufacturing customers across the globe.”

Total consideration paid at closing was approximately $5.0 million, in cash. The purchase price is subject to a net working capital adjustment and additional earnings-based contingent consideration of up to approximately $8.6 million, based on operating results over the two-year period immediately following closing. Contingent consideration earned, if any, would be payable in cash.

Randy Grigg, managing partner of Ridgecrest Advisors, advised Edgewater on this transaction. “The combination of Zero2Ten and Edgewater Fullscope creates a Microsoft Dynamics powerhouse in the manufacturing vertical,” said Grigg.

About Edgewater

Edgewater Technology, Inc. (NASDAQ: EDGW) is a strategic consulting firm delivering a blend of classic and product-based consulting services. Edgewater addresses the market both vertically by industry and horizontally by product and technology specialty, providing its client base with a wide range of business and technology solutions. As one of the largest IT consulting firms based in New England, the company works with clients to reduce costs, improve processes and increase revenue through the judicious use of technology. Edgewater’s brand names include Edgewater Technology, Edgewater Ranzal and Edgewater Fullscope. To learn more, please visit www.edgewater.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:

  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 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.