- ASGN Incorporated (NYSE: ASGN) has announced that it will buy GlideFast Consulting in a $ 350 million deal. These are the details.
ASGN Incorporated (NYSE: ASGN)-a leading provider of IT services and solutions, including technology and creative digital marketing, to all sectors of commerce and government-has announced that it has signed a specific agreement to acquire GlideFast Consulting LLC, an elite ServiceNow Partner and leading IT consulting, implementation and development company, for $ 350 million in cash. The deal, which is subject to traditional closing conditions, is expected to close in early July 2022.
Launched in 2015 and based in Waltham, Massachusetts, GlideFast provides customized 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 named 2022 ServiceNow Americas Elite Segment Partner of the Year.
GlideFast’s experienced team of more than 350 consultants across the United States, Canada, and India will be part of Apex Consulting Services. And 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% revenue growth in the first quarter of 2022 on a consistent currency 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 full year of 2022 and mid-youth EBITDA margins. And the GlideFast results will be included in the ASGN results from the acquisition date.
For 2023, GlideFast estimates revenue growth of approximately 30% in 2022 and mid-youth EBITDA margins. And these estimates do not include any revenue synergies associated with the current pipeline of ASGN opportunities.
With the total addressable market for the ServiceNow platform estimated at approximately $ 190 billion ServiceNow, there is a long runway ahead for integrated companies. And as with Apex Systems, GlideFast’s client base is in many industry verticals, including TMT (Telecom, Media, Technology), Financial Services, Consumer and Industrials, Business & Government Services and Healthcare.
Updates On Previously Announced Financial Estimates For Q2 2022
ASGN also reaffirmed that it expects revenues for the second quarter of 2022 to be within its previously announced range of $ 1.108 billion to $ 1.128 billion. Moreover, it also expects Adjusted EBITDA for the quarter to exceed the high-end of its previously announced range of $ 135 million to $ 140 million primarily as a result of the estimated higher mix of commercial consulting revenues.
IMPORTANT QUOTE:
“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. “
– ASGN Chief Executive Ted Hanson
“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. ”
– ASGN President Rand Blazer
“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. “
– GlideFast CEO Michael Lombardo