Largest Independent FileNet Consultancy in U.S. and Five-Time FileNet Partner of the Year Joins Perficient; Company Raises 2013 Revenue Guidance Range to $358 million to $378 million
SAINT LOUIS (May 2, 2013) – Perficient, Inc. (NASDAQ: PRFT), a leading information technology consulting firm serving Global 2000 and other large enterprise customers throughout North America, today announced it has acquired northeastern U.S.-based TriTek Solutions, Inc. (“TriTek”), an IBM- focused enterprise content management and business process management consulting firm that generated $19 million in 2012 services revenue.
The transaction will increase Perficient’s current annualized revenues to approximately $360 million and is expected to be accretive to adjusted earnings per share immediately. With the acquisition, the company is raising its full year 2013 revenue guidance to a range of $358 million to $378 million from the previously provided range of $345 million to $365 million.
“Already one of the largest IBM systems integrators in the country, we’re pleased to strengthen our skills even further with the addition of TriTek - another IBM Premier Partner,” said Jeffrey Davis, Perficient’s chief executive officer and president. “TriTek brings meaningful services expertise, impressive bill rates and margins, important intellectual property assets and a proven track record of growth, profitability and client satisfaction.”
“We’re thrilled to announce this strategic expansion of our IBM practice. TriTek’s outstanding FileNet reputation and expertise deepens our existing capabilities and further positions Perficient as the IBM solution provider of choice for enterprises across North America,” said John Jenkins, Perficient’s vice president of IBM operations. “Furthermore, we expect this development will positively impact Perficient’s financial services practice, given TriTek’s critical mass in the northeastern U.S. and strong financial services industry client roster.”
The acquisition of TriTek:
- Increases Perficient’s market presence in the northeastern United States, adding offices in the key geographies and technology markets of New York City, Boston and Washington, D.C. metro area;
- Adds approximately 120 consulting, technology, sales and support professionals; and
- Adds client relationships with several Fortune 500 and Global 2000 enterprise customers, including many of the world’s leading financial services and insurance firms.
All TriTek co-founders will join Perficient in key leadership roles. Co-founder and Chief Executive Jack Finnegan will join as a general manager and report directly to John Jenkins. Co-founders Peter Gretz and Chris Leach join as directors.
“Perficient is well known for its expertise across many technology platforms and is widely-regarded as one of the largest and most capable systems integrators in the country,” said Finnegan. “Joining the Perficient team accelerates our collective opportunities for continued growth and success.”
In addition to extensive expertise with IBM technologies, Perficient and TriTek leverage partnerships with other leading technology innovators including Pegasystems, Inc. and EMC to provide clients end-to-end, integrated business-driven technology solutions. Both Perficient and TriTek will demonstrate their ECM expertise at EMC World 2013, which takes place May 6-9 in Las Vegas. Perficient and TriTek experts will exhibit in the Solutions Pavilion and will discuss hot topics like content management and integration, content assessments, cloud computing and virtualization, and backup, recovery and archiving, and how companies can integrate the newest EMC-certified solutions to meet their business needs.
The consideration paid in the transaction is approximately $18.5 million and includes $13.2 million in cash and approximately $5.3 million worth of Perficient common stock (based on the average closing price of Perficient’s common stock on the NASDAQ Global Select Market for the thirty trading days immediately preceding the acquisition close per the terms of the acquisition agreement).
Randy Grigg, managing partner of Ridgecrest Advisors, advised Perficient on the transaction in his capacity as a registered investment banking agent of M&A Securities Group, Inc. TM Capital Corp., a middle market focused investment bank with offices in Boston, New York and Atlanta, served as financial advisor to TriTek Solutions.
Perficient is a leading information technology consulting firm serving Global 2000 and enterprise customers throughout North America. Perficient’s professionals serve clients from a network of offices across North America and three offshore locations, in Eastern Europe, India, and China. Perficient helps clients use Internet-based technologies to improve productivity and competitiveness, strengthen relationships with customers, suppliers and partners, and reduce information technology costs. Perficient, traded on the Nasdaq Global Select Market, is a member of the Russell 2000® index and the S&P SmallCap 600 index. Perficient is an award-winning “Premier Level” IBM business partner, a TeamTIBCO partner, a Microsoft National Systems Integrator and Gold Certified Partner, an EMC Select Services Team Partner, and an Oracle Platinum Partner.
About TriTek Solutions, Inc.
TriTek Solutions, an IBM Software ValueNet partner and Premier PartnerWorld member, has become the leader in the design, development and delivery of Enterprise Content Management and Business Process Management solutions. Offering industry-specific applications for the financial services, insurance, utilities and government verticals, TriTek is dedicated to solving the greatly varied and complex business problems of its customers. Having earned the IBM Beacon Award for the Most Outstanding Information on Demand solution and numerous other industry accolades, TriTek’s community-wide leadership status in the implementation of IBM ECM and BPM solutions is consistently recognized.
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Some of the statements contained in this news release that are not purely historical statements discuss future expectations or state other forward-looking information related to financial results and business outlook for 2013. Those statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The “forward-looking” information is based on management’s current intent, belief, expectations, estimates, and projections regarding our company and our industry. You should be aware that those statements only reflect our predictions. Actual events or results may differ substantially. Important factors that could cause our actual results to be materially different from the forward-looking statements include (but are not limited to) those disclosed under the heading “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2012. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. This cautionary statement is provided pursuant to Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release are made only as of the date hereof and we undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future.