Consulting Sector M&A Deals for week beginning 2nd March

businessman doing handstand on the beachPennoni Associates Inc. (USA) acquired assets of Jones-Stuckey Ltd., Inc. (USA)
Deal Size: Unspecified Industry: Engineering consulting Date: March 2015
Pennoni, an ENR Top 100 engineering, science, and design consulting firm, is pleased to announce the acquisition of the assets of the 17-person firm Jones-Stuckey Ltd., Inc. headquartered in Columbus with a regional office in Akron. The firm will now do business as Jones-Stuckey, a Division of Pennoni. Founded in 1965, Jones-Stuckey is a civil engineering firm providing transportation, bridge, water/wastewater, water resources, structural and construction engineering inspection services. “We are excited that Jones-Stuckey has joined our firm,” said Pennoni’s Director of Strategic Growth, Joe Viscuso, PE. “Jones-Stuckey’s services match our core services and they bring a wealth of experience in a new geographic region for Pennoni. They have a solid reputation with 50 years of serving the Ohio community and their mission to “be available and accountable to our clients is one of the most valuable assets we can provide” reflects our values as well. Both firms are focused on the needs of our clients by providing creative, value-added solutions.” Jones-Stuckey Ltd., Inc. provides civil engineering and design consulting services. Pennoni Associates Inc. provides engineering and design consulting services to local, state, and federal government clients, as well as private, commercial, industrial, construction, and other professional firms in the United States.

Parsons Corporation (USA) acquired T.J. Cross Engineers, Inc. (USA)
Deal Size: Unspecified Industry: Engineering consulting Date: March 2015
Parsons is pleased to announce that it has acquired T.J. Cross Engineers, Inc., a privately held oil and gas industry professional services firm specialising in engineering, design, and consulting services. The acquisition will expand Parsons’ oil and gas offerings and strengthen the corporation’s energy and chemicals portfolio. Headquartered in Bakersfield, CA, and with nearly 200 staff resources, TJ Cross has extensive upstream oil and gas experience. TJ Cross was founded in 1990 and serves the major oil and gas producers on the West Coast with an emphasis on heavy oil production. “This acquisition augments Parsons’ oil and gas market services. We see strong alignment with our focus on core values and customer service, and we believe that combining Parsons’ engineering, procurement, and construction services platform with TJ Cross’ strong engineering base provides an exciting engine for growth,” said Chuck Harrington, Parsons’ Chairman and CEO. T.J. Cross Engineers, Inc. operates as a mechanical, civil, chemical/process, structural, electrical, and instrumentation/controls consulting engineering firm. Parsons Corporation provides engineering, construction, technical, and management services.

Science Applications International Corporation (USA) to acquire Scitor Corporation (USA)
Deal Size: $790 million Industry: Engineering consulting Date: March 2015
Science Applications International Corp. announced that it has entered into a definitive agreement to acquire intelligence community market leader Scitor Corp. for $790 million in an all cash transaction from private equity firm Leonard Green & Partners. The SAIC Board of Directors has approved the transaction, which is expected to close in May 2015 and is subject to customary closing conditions. “The acquisition of Scitor unites two great companies with premier workforces making a profound difference for customers,” said SAIC CEO Tony Moraco. “Scitor is a recognised market leader with long-standing customer and industry relationships within the intelligence community and is aligned with SAIC’s market expansion strategy. Operating as one company represents an opportunity to create shareholder value by gaining access to new customers and leveraging capabilities from both companies to increase revenues and earnings.” The acquisition is highly complementary and aligns with SAIC’s previously communicated strategy to expand into the intelligence community and Air Force markets. Scitor is a recognised leader within the intelligence community, which is an attractive growth market better accessed by an acquisition. This accelerates SAIC’s entry to the intelligence community by providing access to classified contracts, cleared personnel and a robust security infrastructure. The business models and cultures of the two companies are compatible with similar services portfolios, low capital requirements, and steady cash flows. Scitor Corporation provides systems engineering, management consulting, and information services to customers in the United States. Science Applications International Corporation, a technology integrator, provides full life-cycle services and solutions in technical, engineering, and enterprise information technology (IT) markets in the United States.

CBIZ, Inc. (USA) acquired Model Consulting, Inc. (USA)
Deal Size: Unspecified Industry: HR consulting Date: March 2015
CBIZ, Inc. announced that it has acquired Model Consulting, Inc., based in Trevose, PA, effective March 1, 2015. Founded by Neil Model in 1990, Model provides employee benefit consulting services to mid-sized companies in the Philadelphia and Southern New Jersey markets. Model Consulting, which will be integrated in to CBIZ’s Plymouth Meeting office, has 13 employees and is expected to add approximately $4.2 million to annualised revenue. Steve Gerard, Chairman and CEO of CBIZ stated, “We are excited to welcome Neil and his team to CBIZ. Their consultative approach to providing group benefit services and their focus on superior client service aligns with ours and makes them a great fit. Having the Model benefits team join our Plymouth Meeting operations will further enhance our employee benefit services, and complements our current financial services, property and casualty, and retirement service offerings in the Mid-Atlantic.” Model Consulting, Inc. is an employee benefits consulting and brokerage firm. CBIZ, Inc., through its subsidiaries, operates as a diversified services company in the United States and Canada.

Calibre Group Limited (Australia) acquired Town Planning Management Engineering Pty Ltd (Australia)
Deal Size: Unspecified Industry: Engineering consulting Date: March 2015
Calibre Group Limited announced its consulting business, Calibre Consulting has expanded its capability and services in Western Australia with the acquisition of urban development consultancy, Town Planning Management Engineering Pty Ltd (“TME”). TME undertakes planning and civil engineering services for private developers and local government, and operates predominantly in the residential and industrial land development sector of South West WA. The acquisition is consistent with Calibre’s strategy of expanding and strengthening its capabilities across the broader Resources, Energy and Infrastructure markets in the Asia-Pacific region. Gary Spence, Managing Director of Calibre’s Consulting Division, said the acquisition of TME will further leverage and enhance the business’ already strong reputation as a leading supplier in the urban development sector and complement its existing Perth-based structural engineering team. “The acquisition of TME will enable us to better service our national clients already operating in West Australia and also those looking to invest in WA for the first time,” said Mr. Spence. Consideration for the acquisition will be paid through a combination of ordinary Calibre shares and cash. Part of this consideration is deferred, and subject to performance targets to be achieved in FY15 and FY16. TME’s existing management, including Managing Director Mr. Wayne Edgeloe, will remain with the business. TME will transition to the Calibre Consulting brand over the coming months. TME Town Planning Management Engineering Pty Ltd provides town planning and design services. Calibre Group Limited, an engineering services and project delivery company, provides integrated engineering services to the resources and infrastructure markets in Australia and internationally.

RKL eSolutions, LLC (USA) acquired Accuvar, Inc (USA)
Deal Size: Unspecified Industry: IT consulting Date: March 2015
RKL eSolutions, an ERP software provider headquartered in Pennsylvania, announced the acquisition of Northern California-based Sage Partner, Accuvar, Inc. The acquisition includes Accuvar’s two offices (San Francisco Bay Area and Sacramento), 10 employees, and more than 170 current customers using solutions that span the Sage portfolio. This represents the latest in a series of company and customer growth initiatives that places RKL eSolutions among top-tier Sage software providers. RKL president Joe Noll says the Accuvar acquisition fits nicely with his company’s strategic growth model which is based on adding a balanced combination of product, consulting, and support at a measured pace. “Accuvar’s sales, service and support experience across the Sage product portfolio will have a strong and positive impact on our ability to serve both new and existing customers.” Accuvar president Joanne Wasak adds, “This acquisition makes two great firms even better as one. Our respective areas of focus and consulting specialties complement each other really well and it’s going to bring a fresh perspective to our entire customer base. It’s an exciting time for us and our clients.” RKL eSolutions offers customised IT services to businesses in a wide variety of industries.

Diversified Communications Inc. (USA) acquired The Sleeter Group, Inc. (USA)
Deal Size: Unspecified Industry: IT consulting Date: March 2015
The Sleeter Group, which hosts a popular conference for accounting technology consultants, has been acquired by Diversified Communications, a family-owned, international media company with a 65-year history. The Sleeter Group, Inc., founded by Doug Sleeter, operates a membership community that provides professional training and development through an annual conference, membership networking forums, webinars, books, exams, newsletters, blogs and research services. The company serves a large market with approximately 28 million small and medium enterprises and 1.8 million accountants in the U.S. The Sleeter Group’s 800 members also provide bookkeeping and consulting services to over 300,000 SMEs. Doug Sleeter will continue to be involved in the business and The Sleeter Group’s staff will join Diversified Communications and remain working from the office in Pleasanton, Calif. “I could not imagine a better match for us than Diversified,” Sleeter said in a statement. “They are just as passionate as we are about serving our market and they are perfectly positioned to build on what we’ve developed. They bring vast resources, incredible management, and deep experience that will help us realise our dreams for serving a growing market. I’m looking forward to working with the Diversified team to and to continue our culture of leading change in the market for small business accounting.” Diversified Communications is an international media company providing market access, education and information through global, national and regional face-to-face events, digital products, publications and television stations. The Sleeter Group, Inc. provides consulting services to small-to medium-sized business owners in the accounting software and business process design areas.

365 Agile Limited (UK) acquired South Views Solutions Limited (UK)
Deal Size: Unspecified Industry: IT consulting Date: March 2015
MXC is pleased to announce that its investee company, 365 Agile Limited (“365 Agile”) has completed its first acquisition, acquiring the entire issued share capital of South Views Solutions Limited (“SVS”) for £1million. SVS is a provider of mobile working and systems integration solutions. SVS is entirely complementary to the existing operations of 365 Agile and creates a market leading mobile working solution with IoT (Internet of Things) capabilities to drive significant benefits for the Social Housing sector and beyond. The combined businesses will have annualised run rate revenues of over £2 million. Marc Young, CEO of MXC said “The acquisition of SVS is a key step in 365 Agile’s strategy. This transaction opens up cross selling opportunities while further cementing 365 Agile’s foot print in its core social housing sector. 365 Agile is exploring a number of opportunities to broaden its offering and to branch out into additional vertical markets.” South Views Solutions Limited provides mobile working and systems integration services. 365 Agile Limited designs and develops mobile platform solution which enables remote working.

Arrow Electronics, Inc. (USA) agreed to acquire immixGroup, Inc. (USA)
Deal Size: Unspecified Industry: IT consulting Date: March 2015
Arrow Electronics, Inc. announced that it has signed a definitive agreement to acquire immixGroup, Inc., a value-added distributor supporting over 800 value-added resellers, solution providers, service providers, and other public sector channel partners with specialised resources to accelerate their government sales. “immixGroup shares our strategic focus on solution selling into the higher value segments of the data center and will bring us an expanded presence in the public sector market,” said Michael J. Long, chairman, president, and chief executive officer of Arrow. Headquartered in McLean, Va., immixGroup, Inc. has a comprehensive offering of IT solutions from over 250 of the world’s leading technology suppliers in addition to a platform of services that helps IT companies do business with the government in the channel. This acquisition is expected to be $.10 to $.14 accretive to earnings per share, excluding the impact of the amortisation of related intangible assets, in the first year post closing. The acquisition is subject to regulatory approvals and is expected to close at the beginning of the second quarter of 2015. immixGroup, Inc. provides IT services for software and hardware manufacturers, their channel partners, and government agencies at federal, state, and local levels globally. Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions worldwide.

Ebix, Inc., (USA) acquired Via Media Health Communication Pvt. Ltd. (India)
Deal Size: Unspecified Industry: Marketing consulting Date: March 2015
Ebix, Inc., a leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, announced that it has acquired Via Media Health, one of India’s leading health content & communication companies. Ebix also announced that Via Media Health would be immediately integrated into its A.D.A.M. Health Information Exchange Division. With nearly thirteen years of experience in health communication, Via Media Health offers a wide range of content & communication services to the health sector in India. This includes Healthcare PR, Digital Communications & integrated communication solutions and content services for Consumer Healthcare, Hospitals, Medical Devices, Diagnostics and the Pharmaceutical industry. Via Media Health’s acquisition will provide A.D.A.M. immediate access to clients across healthcare delivery, diagnostics, consumer health, pharmaceuticals and public health and to a wide network of Key Opinion Leaders (KOLs), Medical Bodies, Associations and the Govt. & Development Organisations in India; with whom Via Media Health has been working closely for more than a decade. Ebix Chairman of the Board, President and CEO Robin Raina said, “We are excited that we are entering the Indian market at a time when Health services and education has been declared a big priority by the Indian Government. Our A.D.A.M. Health Information Exchange and Via Media Health complement each other’s services perfectly, opening up tremendous cross-selling opportunities on both sides. We see this not just as a business opportunity but also as an opportunity to contribute to health and medical education in India. Via Media Health’s reach and expertise, I feel, will help speed things up for us in that direction.” .D.A.M., Inc. provides online information and technology solutions for employers, benefits brokers, healthcare organisations, and online media companies primarily in the United States. Ebix, Inc. provides software and e-commerce solutions to the insurance industry.

Dovre Group Plc (Finland) to acquire Norwegian Petroleum Consultants As (Norway)
Deal Size: Unspecified Industry: HR consulting Date: March 2015
NPC is a Norwegian privately-held company focusing on providing staffing services to the oil & gas industry. NPC, an award-winning growth company, has operations in Norway, South East Asia, the US and the UK. In 2014, NPC recorded sales of NOK 576 million (around EUR 67 million), and an EBITDA of NOK 18.1 million (around EUR 2.1 million) excluding non-recurring items. Despite the fast growth the equity ratio of NPC is around 26%. NPC’s figures are based on unaudited 2014 financials. NPC has around 380 employees. The sellers are committed to continue working for Dovre Group. In 2014, the combined net sales of the two companies were around EUR 166 million. The combined company will become a major staffing company in Norway. Other home markets of the combined company are Canada, South East Asia, the US, the Middle East and Russia. “This deal is an important step in executing our scalable growth strategy,” says Rainer Häggblom, Chairman of Dovre Group. “The NPC team will significantly strengthen the Dovre Group team.” “This is good news for our clients, employees, consultants and shareholders,” comments Patrick von Essen, CEO of Dovre Group. “It will give us a stronger offering, a larger geographical spread, more exciting career opportunities and better economies of scale.” Norwegian Petroleum Consultants AS provides staffing services to the oil and gas industry. Dovre Group Plc provides project management services worldwide.

National Technical Systems Inc. (USA) acquired National Quality Assurance Limited (UK)
Deal Size: Unspecified Industry: Business consulting Date: March 2015
National Technical Systems, Inc. (“NTS”), the leading independent provider of environmental simulation testing, inspection, and certification solutions in the United States, announced that it has acquired Dunstable, U.K.-based National Quality Assurance (“NQA”), one of the largest and most respected ISO registrars in the world. With more than 32,000 active certifications in over 75 countries, NQA provides its broad base of customers with a single certification resource for management system registration as well as process and product compliance services and support. “Our goal is to be the world’s partner of choice in testing, inspection, and certification solutions when the highest level of product, supply chain, and management system reliability and safety is required,” said NTS President and Chief Executive Officer William C. McGinnis. “This acquisition creates a more unified, global NQA and is a powerful enabler of that vision.” National Quality Assurance Limited provides assessment, verification, and certification services that enable businesses, government departments, and charitable organisations to implement and improve their management systems. National Technical Systems, Inc. provides testing and engineering services to the aerospace, defense, telecommunications, automotive, energy, consumer products, commercial and industrial products, and medical markets worldwide.

R2 Integrated, LLC (USA) acquired CatapultWorks Demand Group (USA)
Deal Size: Unspecified Industry: Marketing consulting Date: March 2015
R2integrated said Thursday it has acquired a Silicon Valley firm, a deal that will double the size of the Baltimore digital marketing agency. R2integrated did not disclose how much it paid for CatapultWorks, a Campbell, Calif.-based digital marketing firm. The deal was backed by Japanese investment firm ORIX Private Equity. R2integrated expects the acquisition will bring annual revenue of $30 million. The deal doubles R2i’s staff to 200 people. About 70 work in the company’s Inner Harbor headquarters. R2i also has offices in Seattle and remote workers throughout the country. “In our industry, if you want to build a national agency headquartered in Baltimore — which I really want to do — you have to have some strategic geography,” CEO Matt Goddard said in an interview Thursday. ORIX, the equity investment firm, in 2013 pumped $10 million into R2i to back acquisitions and build R2i into a $100 million company. The $10 million was an initial investment, with commitment to back a larger acquisition “if we found the right deal,” Goddard said. R2 Integrated, LLC provides digital marketing and technology solutions. CatapultWorks Demand Group provides integrated marketing and data services.

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