ASGN acquires GlideFast Consulting, a ServiceNow IT consulting partner, for $ 350 million in cash. The seller is private equity firm BV Investment Partners. which has owned GlideFast since September 2020. The deal is expected to close in July 2022.
This is the technology M&A deal number 523 covered by ChannelE2E so far in 2022.
ASGN acquired ServiceNow IT Consulting Partner: About Buyer and Seller
GlideFast, founded in 2015, is headquartered in Waltham, Massachusetts. GlideFast has 350 ServiceNow consultants supporting implementations, integration, managed support and application development. The consulting team – which carries 1,800 certifications – has completed 1,500 ServiceNow projects, the seller indicated.
ASGN, founded in 1985, is headquartered in Glen Allen, Virginia. The company provides IT services and solutions, including technology and creative digital marketing, to the commercial and government sectors. ASGN has 16,720 employees listed on LinkedIn.
M&A Deal Valuation in IT Consulting – Rough Estimates: Poke the M&A announcement and you can get a rough feel for the appreciation of the deal. For example:
- GlideFast expects to generate $ 95 million in revenue for the entire year 2022 and mid -youth EBITDA margins.
- Let’s assume that “mid-teens” EBITDA margins mean approximately 15%.
- With revenue of $ 95 million, that’s equivalent to $ 14.25 million in EBITDA.
- The $ 350 million M&A deal is therefore worth approximately 25X annual EBITDA for 2022. The math: $ 350 million divided by $ 14.25 million = 24.56.
- True, that’s a rough estimate because we don’t know actual EBTIDA margins or actual EBITDA results for 2022.
ASGN acquired GlideFast: Executive Perspectives
In a prepared statement about the deal, ASGN CEO Ted Hanson said:
“In line with our three-year strategic growth plan, our acquisition of GlideFast supports ASGN’s commitment to take on in-demand commercial consulting firms that are growing, combined with expected revenue synergies and the organic growth of our underlying business, will bring ASGN closer to our goal of $ 6 billion revenues by 2024. By aligning our current IT consulting offerings with GlideFast’s expertise, we will begin our ServiceNow business within Apex Consulting Services and will 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 enterprise business process modernization. “
The ASGN President added Rand Blazer:
“We look forward to welcoming GlideFast to ASGN and jointly forming a world-class ServiceNow consulting team. With significant client synergies 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 benefiting from their added services. with value and a proven track record to build on our growing new business pipeline. ”
Well -known CEO of GlideFast Michael Lombardo:
“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. “
Graduated Matt Kinseymanaging partner of BV Investment Partners:
“We partnered with the founders of GlideFast because we shared their vision that the company can build its presence in the ServiceNow ecosystem and help companies optimize their investments in the ServiceNow platform. We are very proud of what the team is leading Mike Lombardowas achieved in a very short time and hopes that the business will continue to expand and evolve in partnership with ASGN. ”
BV invested in GlideFast in 2020 and merged it with sister company Pharicode in 2021.
ASGN, GlideFast: Past IT Consulting Acquisition
ASGN has experience in M&A. The company previously acquired:
Meanwhile, GlideFast also has M&A experience. The company acquired ServiceNow partner CloudPires in April 2021, and also merged with Pharicode that year.