Computer Task Group to acquire Tech-IT PSF S.A. for about $10.3M in cash
CTG announced a definitive agreement to acquire Luxembourg-based Tech-IT PSF S.A., a leading consulting and IT solutions company, through its subsidiary CTG Luxembourg PSF S.A. The proposed all-cash transaction is valued at about $10.3M, not including potential future earn outs, for Tech-IT's estimated $20M in annualized revenue and approximately $1.5M of cash and cash equivalents. CTG expects to fund the $10.3M purchase price of the acquisition through a combination of cash on hand, and a drawdown of capital from the company's revolving credit facility. The boards of directors of both companies unanimously approved the transaction, which is subject to certain customary closing conditions, including regulatory approval from the Luxembourg regulatory entity and is anticipated to close in January 2019.