Perficient, Inc. PRFT (“Perficient”), a leading information
technology and management consulting firm serving Global 2000 and other large
enterprise customers throughout North America, today announced it has entered
into a purchase agreement to acquire the assets of Zeon Solutions Incorporated
and its subsidiary, Grand River Interactive LLC, and an Indian affiliate
(collectively, “Zeon Solutions”), a $23 million annual services revenue
business and IT consulting firm specializing in the development,
implementation, integration and support of e-commerce solutions.
Perficient's current annualized revenues are now approaching $500 million, and
the acquisition is expected to be accretive to adjusted earnings per share.
“We are excited to broaden and deepen our commerce expertise with the
innovative capabilities Zeon Solutions brings to Perficient,” said Jeffrey
Davis, Perficient's chief executive officer and president. “Additionally,
their formidable reputation, customer-centric mentality, strong client roster
and demonstrated propensity to consistently grow revenues and profitability
ensure a strong cultural fit and compelling opportunities for accelerated
growth moving forward.”
“Today's leading enterprises optimize their customers' online commerce
experiences and drive volume by leveraging sophisticated digital marketing and
search engine optimization techniques, along with outstanding user
experiences. Zeon Solutions has been well-positioned and succeeding in this
dynamic space for many years,” said Ed Hoffman, Perficient's vice president of
digital experience solutions. “As one of the largest independent Insite
Commerce and Magento consultancies in North America, Zeon Solutions' services
extend Perficient's existing commerce capabilities and enable us to deliver an
even broader array of solutions to clients.”
The acquisition of Zeon Solutions:
* Enhances and expands Perficient's e-commerce, content management, product
information management, mobile and digital marketing services and solution
expertise;
* Increases Perficient's geographic footprint, adding U.S. market locations
in Milwaukee and Ann Arbor as well as an off-shore delivery center in
Nagpur, India;
* Adds nearly 400 consulting, technology, sales and support professionals;
and
* Adds client relationships with enterprise customers including BSN Sports,
Hickory Farms, HoMedics, Jordan's Furniture, Steelcase, Walter Kidde,
Woodstream Corp., and many others.
Zeon Solutions Chief Executive Officer Rupesh Agrawal joins Perficient in a
key leadership role.
“Perficient's commitment to, and reputation for, delivering excellence is
highly regarded across many industries and technology platforms,” said
Agrawal. “We are thrilled to join the Perficient team and work to grow and
realize success for our customers in new and exciting ways.”
The parties are targeting a closing in early January 2015, subject to
customary closing conditions. Total consideration to be paid at closing will
be approximately $35.7 million, consisting of approximately $22.3 million in
cash and approximately $13.4 million in Perficient common stock (based on the
average closing price of Perficient's common stock on the NASDAQ Global Select
Market for the 30 trading days immediately preceding the closing date per the
terms of the purchase agreement). The purchase price is subject to a net
working capital adjustment and earnings-based contingent consideration of up
to approximately $2.8 million, payable in cash and Perficient common stock.
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.
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