Upon closing of the acquisition, ASGN will be a major player in the large and growing ServiceNow marketplace
ASGN Provides Updates to Its Previously Announced Financial Estimates for Q2 2022
ASGN Incorporated (NYSE: ASGN), a leading provider of IT services and solutions, including technology and creative digital marketing, across the commercial and government sectors, announced today that it has signed a specific agreement to acquire GlideFast Consulting LLC (“GlideFast” or “the Company”), an elite ServiceNow Partner and leading IT consulting, implementation and development company, for $ 350 million in cash. The transaction, which is subject to Hart-Scott-Rodino ( HSR) and other traditional closing conditions, is expected to close in early July 2022.
Founded in 2015 and headquartered in Waltham, Massachusetts, GlideFast provides tailored solutions and professional services for ServiceNow implementations, integration, managed support and application development. With over 1,800 certifications and 1,500 completed ServiceNow projects, GlideFast was recently named the 2022 ServiceNow Americas Elite Segment Partner of the Year. GlideFast’s experienced team of over 350 consultants across the United States, Canada and India will be part of Apex Consulting Services. ServiceNow is fast becoming the go-to operating system of businesses around the world looking to optimize their processes and digitize their entire business. The cloud-based digital workflow platform saw 30.5 percent revenue growth in the first quarter of 2022 on a consistent monetary basis and expects similar topline growth in the second quarter.
Supported by an active pipeline and over 150 active customers, GlideFast is expected to generate approximately $ 95 million in revenues for the entire year 2022 and mid-youth EBITDA margins. GlideFast ’results will be included in ASGN’s results from the date of acquisition. For 2023, GlideFast estimates revenue growth of approximately 30 percent in 2022 and mid-youth EBITDA margins. These estimates do not include any revenue synergies associated with the current pipeline of ASGN & CloseCurlyQuote opportunities.
“In line with our three-year strategic growth plan, our acquisition of GlideFast supports ASGN’ commitment to acquire in-demand commercial consulting firms that are growing, along with expected revenue synergies and the organic growth of our underlying business, will bring ASGN closer to our goal of $ 6 billion in revenues by 2024, ”said ASGN Chief Executive Officer, Ted Hanson. “By aligning our current IT consulting offerings with GlideFast’ expertise, we will start our ServiceNow business within Apex Consulting Services and immediately have access to an industry-leading salesforce and consulting team. Together, we will ensure that ASGN’s commercial client base has the right talent to push the next generation of business process modernization into business. ”
With the total addressable market for the ServiceNow platform estimated at approximately $ 190 billion ServiceNow, there is a long runway ahead for integrated companies. As with Apex Systems, GlideFast ’client base is in multiple industry verticals, including TMT (Telecom, Media, Technology), Financial Services, Consumer and Industrials, Business & Government Services and Healthcare.
“We look forward to welcoming GlideFast to ASGN and jointly forming a world-class ServiceNow consulting team,” said ASGN President, Rand Blazer. “Along with significant client integration along with the cultural similarities between our two businesses, we will quickly and strategically grow GlideFast’s operations within our current customer base, while at the same time leveraging their services. with added value and a proven track record to build on our growing new business pipeline. ”
“GlideFast is the 2022 Global Elite Partner of the year. We are excited to continue to expand our ServiceNow expertise by delivering leading execution services to ASGN’s Fortune 1000 customers. This investment from ASGN will greatly enhance our ability to serve the ServiceNow marketplace, ”concluded GlideFast CEO, Michael Lombardo.
Updates to Previously Announced Financial Estimates for Q2 2022
ASGN also reaffirmed today that it expects revenues for the second quarter of 2022 to be within its previously announced range of $ 1,108.0 million to $ 1,128.0 million. It also expects Adjusted EBITDA for the quarter to exceed the high-end of its previously announced range of $ 135.0 million to $ 140.0 million primarily as a result of the estimated higher mix of commercial consulting revenues.
About ASGN Incorporated
ASGN Incorporated (NYSE: ASGN) is a leading provider of IT services and solutions, including technology and creative digital marketing, to all commercial and government sectors. ASGN helps corporate enterprises and government organizations develop, implement and operate critical IT and business solutions through its integrated offering of professional staffing and IT solutions. For more information, visit us at asgn.com.
Safe Harbor
Certain statements made in the release of this news are “forward statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and relate to high levels of risk and uncertainty. Forward-looking statements include statements about our expected financial and operational performance.
All statements in this news release, except those presenting strictly historical information, are future statements. Future statements are not guarantees of future performance and actual results may differ significantly. In particular, we make no guarantees that the proposed revenue scenarios outlined above will be achieved. Additional examples of forward -looking statements in this press release include, without limitation, statements about our ability to attract, train and retain qualified staffing consultants, the availability of qualified contract professionals, managing our growth, continuous performance and improvement of our business- extensive information system, our ability to handle our litigation matters, the successful merger of our acquired subsidiaries and other risks detailed from time to time -sometimes in our reports filed with the SEC, including our Annual Report on Form 10-K for the year ended December 31.
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