Computer Task Group acquires Soft Company, sees immediate accretion
CTG announced it has acquired Paris-based SOFT COMPANY, a consulting and engineering company with complementary expertise in both business and information systems.adds The company will add approximately $30M in annualized revenue. The all-cash transaction is valued at $16.5M, not including potential future earnouts, for SOFT COMPANY's approximately $30 million in annualized revenue and approximately $3.5 million of cash and cash equivalents as of December 31, 2017. Soft Company is a profitable company, and excluding customary acquisition-related expenses, the transaction is expected to be immediately accretive to CTG's operating margin and earnings per share. CTG funded the purchase price of the acquisition through a combination of cash on hand and a drawdown of capital from the Company's recently expanded three-year revolving credit facility. The boards of directors of both companies unanimously approved the transaction, and the acquisition was not subject to any regulatory approvals.