RGP Acquires Digital Transformation Firm Veracity Consulting Group, LLC
July 31 2019 - 4:45PM
Business Wire
Transaction adds wide set of digital
capabilities to RGP’s solutions platform
Resources Connection, Inc., (NASDAQ: RECN), a multinational
business consulting firm operating as Resources Global
Professionals (‘RGP’), closed a transaction to acquire 100% of the
equity of Veracity Consulting Group, LLC (‘Veracity’) for an
initial cash consideration of $30.6 million, plus potential
additional payments based on longer-term performance.
Veracity is a fast-growing, digital transformation firm based in
Richmond, Virginia, that delivers innovative solutions to the
Fortune 500 and leading healthcare organizations. Founded in 2015
by Bhadresh Patel, Jon Bohlman, Elisa Parkin, Joshua Lindsey,
Rachel Adler and Matt Kumper, Veracity combines business-led
digital strategy and design prowess with deep technology expertise,
serving clients across four core capability areas – Strategy &
Roadmap, Brand Experience, Workforce Experience and Customer
Experience. Veracity achieved $21.4 million in revenue in 2018
which represents 58% growth over 2017.
The acquisition of Veracity is a powerful step in accelerating
RGP’s stated objective to enhance its digital capabilities.
Further, the combination allows RGP to offer comprehensive
end-to-end solutions to its clients by combining Veracity’s
customer-facing offerings with RGP’s depth of experience in
transforming the back office.
Kate Duchene, CEO of RGP, said, “I am beyond thrilled to welcome
Veracity into the RGP family. With its proven track record of
helping clients solve problems using digital solutions, Veracity
offers us an instant and credible foundation upon which to build
our digital innovation offerings. Most importantly, the cultural
alignment here is compelling and undeniable – at its core, Veracity
is a people-first business, just like RGP.”
Bhadresh Patel, CEO of Veracity expressed equal enthusiasm for
the transaction: “We see an exceptional opportunity to accelerate
Veracity’s momentum to grow and scale while delivering combined
value to our and RGP’s client base around the world.”
Veracity will operate as a wholly-owned subsidiary of RGP. The
Veracity brand and operations will remain intact, and the company’s
leadership team will work in close partnership with RGP to scale
healthy growth for Veracity in the coming years.
Please refer to our website at www.rgp.com for more
information.
About RGP
RGP is a global consulting firm that enables rapid business
outcomes by bringing together the right people to create
transformative change. As a human capital partner for our clients,
we specialize in solving today’s most pressing business problems
across the enterprise in the areas of Business Transformation,
Governance, Risk and Compliance and Technology and Digital
Innovation. Our engagements are designed to leverage human
connection and collaboration to deliver practical solutions and
more impactful results that power our clients, consultants and
partners’ success.
RGP was founded in 1996 to help finance executives with
operational needs and special projects created by workforce gaps.
Our first-to-market, agile human capital model disrupted the
professional services industry at a time when traditional talent
models prevailed. Today’s new ecosystem for work embraces our
founding principle – quickly align the right resource for the work
at hand with a premium placed on value, efficiency and ease of
use.
Our pioneering approach to workforce strategy uniquely positions
us to support our clients on their transformation journeys. With
more than 3,800 professionals, we annually engage with over 2,400
clients around the world from more than 70 practice offices. We are
their partner in delivering on the future of work. Headquartered in
Irvine, California, RGP is proud to have served 86 of the Fortune
100.
The Company is listed on the Nasdaq Global Select Market, the
exchange’s highest tier by listing standards. To learn more about
RGP, visit: http://www.rgp.com. (RECN-F)
Forward-Looking Statements
Certain statements in this press release are “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Such forward-looking statements may be identified by words such as
“anticipates,” “believes,” “can,” “continue,” “could,” “estimates,”
“expects,” “intends,” “may,” “plans,” “potential,” “predicts,”
“remain,” “should” or “will” or the negative of these terms or
other comparable terminology. Such statements and all phases of the
Company’s operations are subject to known and unknown risks,
uncertainties and other factors that could cause our actual
results, levels of activity, performance or achievements and those
of our industry to differ materially from those expressed or
implied by these forward-looking statements. Risks and
uncertainties that may or may not be realized include certain
anticipated benefits of the acquisition such as our ability to
offer front-end, digital capabilities to our clients, our ability
to greatly strengthen our position in the growing digital market
space, our ability to move into the healthcare space, EBITDA and
revenue expectations, as well as seasonality, overall economic
conditions and other factors and uncertainties as are identified in
our most recent Annual Report on Form 10-K and our other public
filings made with the Securities and Exchange Commission (File No.
0-32113). Additional risks and uncertainties not presently known to
us or that we currently deem immaterial may also affect our
business or operating results. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date hereof. The Company does not intend, and
undertakes no obligation, to update the forward-looking statements
in this press release to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events,
unless required by law to do so.
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version on businesswire.com: https://www.businesswire.com/news/home/20190731006022/en/
Media Contact: Michael Sitrick (US+) 1-310-788-2850
mike_sitrick@sitrick.com
Investor Contact: Kate Duchene, Chief Executive Officer
(US+) 1-714-430-6370 Kate.Duchene@rgp.com
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