PITTSBURGH, Oct. 1, 2020 /PRNewswire/ --
Transaction Highlights:
- AmberLeaf will increase scale and add complementary
capabilities to the Company's Data and Analytics business segment,
branded as Mastech InfoTrellis;
- The acquisition will strengthen and provide additional scope
from which to implement Mastech InfoTrellis' Enterprise
Intelligence Hub strategy; and
- The combined businesses will provide customers with an expanded
suite of service offerings, delivery capabilities, and human
capital across North America,
EMEA, India and ASEAN
countries.
Mastech Digital, Inc. (NYSE American: MHH), a leading provider
of Digital Transformation IT Services, today announced the
acquisition of AmberLeaf Partners, Inc., a Chicago-based customer experience consulting
company. The acquisition will bring together two distinct brands,
one that architects and delivers enterprise intelligence through
data and analytics, and the other that provides experience
consulting through the customer lifecycle.
AmberLeaf is a uniquely positioned organization that offers
managed services for a variety of Cloud-based enterprise
applications across sales, marketing, and customer service
through the AmberLeaf Experience as a Service (AXaaS).
The acquisition will provide a broader scope for AXaaS across
Mastech InfoTrellis's global client base.
The transaction is valued at $14.0
million, with $9.5 million
paid in cash at closing, subject to customary adjustments, and up
to $4.5 million in deferred payments
over the next two years. The deferred payments are contingent upon
the acquired business achieving specific financial targets during
the two years following the closing of the acquisition.
Mastech InfoTrellis expects to realize the following synergies
from the combined enterprise:
- Mastech InfoTrellis will enhance its capabilities in customer
experience strategy, global service delivery, and IP-led
platforms;
- AmberLeaf's customers will have access to Mastech InfoTrellis'
"enterprise intelligence hub" - powered by its data bus and
knowledge graphs; and
- The AmberLeaf business will have access to Mastech InfoTrellis'
global delivery engine and robust sales and marketing
capabilities.
Commenting on the acquisition, Vivek
Gupta, President and CEO of Mastech
Digital, stated, "In 2017 we began our transformational
journey to become a world-class provider of Data Management and
Analytics services. The acquisition of AmberLeaf reinforces
our commitment to this strategy by enhancing our ability to
significantly scale our Data and Analytics business
segment."
Concurrent with the acquisition, the Company entered into a
revised credit facility with PNC Bank which increased its term loan
facility by approximately $10 million
to $17.5 million and increased its
revolving loan facility to $30
million, an increase of $7.5
million from the previous credit line of $22.5 million. Commenting on the new
credit facility, Jack Cronin, CFO
and Corporate Secretary of Mastech Digital said, "While we
could have comfortably funded the acquisition with funds available
under our previous facility, this revised credit agreement will
give us sufficient financial flexibility to continue to invest in
our businesses in both an organic and inorganic manner."
Mastech Digital's advisors on the transaction
included The Chesapeake Group – investment banker and Blank
Rome, LLP - legal counsel.
About Mastech Digital / Mastech InfoTrellis:
Mastech Digital (NYSE American: MHH) is a leading provider of
Digital Transformation IT Services. The Company offers Data
Management and Analytics Solutions, Digital Learning, and IT
Staffing Services with a Digital First approach. A
minority-owned enterprise, Mastech Digital is headquartered in
Pittsburgh, PA with offices across
North America, EMEA, India and ASEAN countries. Mastech
InfoTrellis is the wholly-owned subsidiary of Mastech
Digital which offers professional services across data management,
data engineering, and data science.
Forward-Looking Statements
Certain statements contained in this release are forward-looking
statements within the meaning of the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act of
1995. Words such as "expects," "anticipates," "plans,"
"believes," "estimates", "plans", "will" and "projects" and
variations of these words and similar expressions are intended to
identify forward-looking statements, which include but are not
limited to (i) projections of revenues, earnings, and cash flow,
and (ii) the expected benefits to Mastech Digital and/or Mastech
InfoTrellis from completing the AmberLeaf transaction and the
expected performance of Mastech Digital and/or Mastech
InfoTrellis following completion of the acquisition and debt
financing, including future financial and operating results,
expected synergies, and the combined company's plans, objectives,
expectations and intentions. These statements are based on
information currently available to Mastech Digital and it assumes
no obligation to update the forward-looking statements as
circumstances change. These statements are not guarantees of future
performance and involve certain risks and uncertainties, which are
difficult to predict and many of which are outside of the control
of Mastech Digital. Therefore, actual future results and trends may
differ materially from what is forecast in forward-looking
statements due to a variety of factors, including, without
limitation, (1) the risk that the acquisition or debt financing
transactions disrupt current plans and operations of Mastech
Digital and/or Mastech InfoTrellis as a result of the announcement
or consummation of such transactions; (2) the ability to
successfully integrate the operations and employees of AmberLeaf
into Mastech InfoTrellis; (3) the ability to recognize the
anticipated benefits of the acquisition of AmberLeaf which may be
affected by, among other things, competition, the ability of
Mastech Digital to grow and manage growth profitably, maintain
relationships with customers and suppliers and retain key
employees; (4) costs related to the acquisition and debt financing;
(5) the possibility that Mastech Digital or AmberLeaf or their
respective subsidiaries and affiliates may be adversely affected by
other economic, business, and/or competitive factors, including the
impacts of the COVID-19 pandemic and governmental responses to
limit the further spread of COVID-19; and (6) other risks and
uncertainties that are described in more detail in Mastech
Digital's filings with the Securities and Exchange Commission,
including its Form 10-K for the year ended December 31, 2019.
Media Contact:
Donna Kijowski
+1-412-787-9551
donna.kijowski@mastechdigital.com
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SOURCE Mastech Digital, Inc.