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ASGN Incorporated (NYSE: ASGN) today announced that it has signed a specific agreement to acquire GlideFast Consulting LLC (“GlideFast” or “the Company”), a select ServiceNow Partner and leading IT consulting, implementation and development company. , in the amount of $ 350 million in cash. The transaction, which is subject to Hart-Scott-Rodino (HSR) and other customary 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 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. 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 the ASGN 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 opportunities.
“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 in revenues by 2024, ”said ASGN Chief Executive Officer, Ted Hanson. “By aligning our current IT consulting offerings with GlideFast’s 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 enterprise business process modernization. “
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’s client base is in many 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 the significant integration of clients 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 services. with value added 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.