RGP Announces Closing of Accretive Solutions, Inc. Acquisition
December 04 2017 - 7:39PM
Business Wire
Resources Connection, Inc., (NASDAQ: RECN), a multinational
business consulting firm operating as Resources Global
Professionals (‘RGP’), today announced the completion of its
previously announced acquisition of substantially all of the assets
and assumption of certain liabilities of Accretive Solutions, Inc.
(‘Accretive’). Accretive is a professional services firm that
provides consulting, staffing and outsourcing solutions to a wide
variety of organizations in the U.S., and supports startups through
its Countsy suite of back office services. The transaction was
completed in accordance with the terms of the agreement announced
on November 1, 2017.
“We are very pleased to have completed our acquisition of
Accretive, and believe that this transaction is in line with our
growth strategy and goals,” said Kate Duchene, President and CEO of
RGP. “We are confident that Accretive’s complementary capabilities
will strengthen RGP’s core competencies and we expect it will
enable us to capitalize on growth opportunities in key U.S.
geographies, capture additional market share in the middle market,
and expand our offerings to startups. Today’s closing marks the
start of an exciting new chapter for RGP and Accretive, and we look
forward to the significant value this transaction can create for
both our clients and shareholders.”
As previously announced, RGP plans to transition Accretive’s
business into the RGP brand over the next 6-9 months, with the
exception of Countsy, which will continue to operate as a
standalone business.
RGP continues to expect the transaction to increase RGP’s
revenue by approximately $65-70 million and EBITDA by $6.5-7.5
million after 9-12 months.
ABOUT RGP
RGP, the operating subsidiary of Resources Connection, Inc.
(NASDAQ: RECN), is a multinational business consulting firm that
helps leaders execute internal initiatives. Partnering with
business leaders, RGP drives internal change across all parts of an
enterprise – accounting; finance; governance; risk and compliance
management; corporate advisory; strategic communications and
restructuring; information management; human capital; supply chain
management; and legal and regulatory.
RGP was founded in 1996 within a Big Four accounting firm.
Today, RGP is a publicly traded company. Including the operations
of Accretive, RGP employs over 3,700 professionals, annually
serving over 2,600 clients around the world from 76 practice
offices.
Headquartered in Irvine, California, RGP has served 87 of the
Fortune 100 companies.
The Company is listed on the Nasdaq Global Select Market, the
exchange's highest tier by listing standards. More information
about RGP is available at www.rgp.com. (RECN-F)
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
capitalize on certain growth opportunities and capture additional
share in the U.S. middle market and deeper penetration with startup
companies, our ability to greatly strengthen our position in key US
markets and add subscription-based services to our offerings, our
ability to exploit the Countsy brand to expand into additional
markets, our ability to achieve our revenue, EBITDA and cost
synergy 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: http://www.businesswire.com/news/home/20171204006226/en/
Resources Global ProfessionalsAnalyst Contact:Herb MuellerChief
Financial Officer(US+) 1-714-430-6500Herb.Mueller@rgp.comorMedia Contact:Michael
Sitrick(US+) 1-310-788-2850mike_sitrick@sitrick.com
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