Transaction will expand RGP’s consulting
capabilities in the financial services sector
Resources Connection, Inc. (Nasdaq: RGP) (“RGP”), a global
consulting firm, today announced it has entered into a definitive
agreement to acquire Reference Point LLC (“Reference Point”).
Reference Point is a strategy, management, and technology
consulting firm serving the financial services sector across four
areas of focus: Strategy & Management, Risk & Regulatory
Compliance, Digital & Technology and Data & Analytics.
Led by Managing Partner Scott Goeden, Reference Point employs a
differentiated consulting delivery model where engagements are led
by former industry executives supported by top-tier consultants.
Focused exclusively on the financial services sector, the firm
provides end-to-end solutions for clients, from strategy
development to implementation to management. Reference Point was
established in 2002 by former banking executives aiming to help
clients manage complex operational challenges unique to the
financial services industry. Headquartered in New York, the company
has additional offices in Washington, D.C., and Charlotte, N.C.
“Reference Point delivers an impressive array of advisory
offerings, and we expect their team’s deep industry acumen to
greatly benefit our clients,” said Kate Duchene, CEO of RGP. “The
financial services industry constitutes one of the largest shares
of U.S. management consulting spend, which is why it was among the
first sectors we invested in and has been a top-three sector for us
since inception. We expect this business combination to accelerate
our growth in this key vertical as we introduce Reference Point’s
higher value advisory solutions to our clients and help Reference
Point scale delivery teams with our on-demand talent. Importantly,
there is significant cultural alignment and synergy between the
Reference Point team, our own consulting business, and our
organization as a whole.”
This transaction, upon closing, will expand the portfolio of
high-value advisory services RGP offers its financial services
clients, and in turn, is expected to accelerate the growth of the
firm’s financial services and overall consulting business. It is
further expected that the business combination will extend RGP’s
project execution and on-demand talent services to Reference
Point’s enterprise clients, while also fueling meaningful growth
acceleration for the Reference Point business through its access to
RGP’s client base and differentiated on-demand talent model. The
current Reference Point management team, led by Mr. Goeden, will
continue to lead the business following the close of the
transaction.
“We look forward to joining forces with RGP to expand the
breadth of our offerings to existing clients and better serve
clients across the global financial services sector through our
collective consulting capabilities,” said Mr. Goeden, Managing
Partner of Reference Point. “RGP aligns with our industry and
digital capabilities as well as our expert-led execution model, and
our organizations share the same values that anchor everything we
do.”
The transaction is expected to close by early summer 2024 and is
subject to customary closing conditions. Clearsight Advisors, Inc.
served as exclusive financial advisor to Reference Point in
connection with the transaction.
ABOUT RGP
Named among Forbes’ World’s Best Management Consulting Firms for
2023, RGP is a global consulting firm focused on project execution
services that power clients’ operational needs and change
initiatives utilizing on-demand, expert and diverse talent. As a
next-generation human capital partner for our clients, we
specialize in co-delivery of enterprise initiatives typically
precipitated by business transformation, strategic transactions or
regulatory change. 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.
We attract top-caliber professionals with in-demand skill sets
who seek a workplace environment characterized by choice and
control, collaboration and human connection. The trends in today’s
marketplace favor flexibility and agility as businesses confront
transformation pressures and skilled labor shortages even in the
face of macroeconomic contraction. Our client engagement and talent
delivery model offers speed and agility, strongly positioning us to
help our clients transform their businesses and workplaces,
especially at a time where cost reduction initiatives drive an
enhanced reliance on a flexible workforce to execute
transformational projects.
We have approximately 3,600 professionals collectively engaged
with over 1,800 clients around the world from 38 physical practice
offices and multiple virtual offices. Headquartered in Irvine,
California, RGP is proud to have served 88% of the Fortune 100.
RGP 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. (RGP-F)
ABOUT REFERENCE POINT
Reference Point is a strategy, management, and technology
consulting firm focused on delivering impactful solutions for
financial services clients. We combine proven experience and
practical expertise in a unique consulting delivery model where our
engagements are led by former industry executives supported by
top-tier consultants, ensuring our clients receive superior quality
and value.
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 as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These statements relate to expectations
concerning matters that are not historical facts. 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. In this press release, such
statements include statements regarding our growth and operational
plans, the expected extension of our project execution and
on-demand talent services to Reference Point’s enterprise clients,
and the accelerated growth of the Reference Point business through
access to our client base and differentiated agile talent model,
and the expected benefits of the Reference Point acquisition to our
clients. These statements and all phases of RGP and Reference
Point’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 include, but are not limited to, the following: risks
related to an economic downturn or deterioration of general
macroeconomic conditions, the highly competitive nature of the
market for professional services, risks related to the loss of a
significant number of our consultants, or an inability to attract
and retain new consultants, the possible impact on our business
from the loss of the services of one or more key members of our
senior management, risks related to potential significant increases
in wages or payroll-related costs, our ability to secure new
projects from clients, our ability to achieve or maintain a
suitable pay/bill ratio, our ability to compete effectively in the
competitive bidding process, risks related to unfavorable
provisions in our contracts which may permit our clients to, among
other things, terminate the contracts partially or completely at
any time prior to completion, potential adverse effects to our and
our clients’ liquidity and financial performances from bank
failures or other events affecting financial institutions, our
ability to close the Reference Point transaction and to realize the
benefits anticipated therefrom, risks that our recent digital
expansion and technology transformation efforts may not be
successful, our ability to build an efficient support structure as
our business continues to grow and transform, our ability to grow
our business, manage our growth or sustain our current business,
our ability to serve clients internationally, additional
operational challenges from our international activities including
due to social, political, regulatory, legal and economic risks in
the countries and regions in which we operate, possible disruption
of our business from our past and future acquisitions, our
potential inability to adequately protect our intellectual property
rights, risks that our computer hardware and software and
telecommunications systems are damaged, breached or interrupted,
risks related to the failure to comply with data privacy laws and
regulations and the adverse effect it may have on our reputation,
results of operations or financial condition, our ability to comply
with governmental, regulatory and legal requirements and company
policies, the possible legal liability for damages resulting from
the performance of projects by our consultants or for our clients’
mistreatment of our personnel, risks arising from changes in
applicable tax laws or adverse results in tax audits or
interpretations, the possible adverse effect on our business model
from the reclassification of our independent contractors by foreign
tax and regulatory authorities, the operating and financial
restrictions from our credit facility, risks related to the
variable rate of interest in our credit facility, the possibility
that we are unable to or elect not to pay our quarterly dividend
payment, and other factors and uncertainties as are identified in
our most recent Annual Report on Form 10-K for the year ended May
27, 2023, filed on July 25, 2023, and our other public filings made
with the Securities and Exchange Commission. 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 the
forward-looking statements included herein, which speak only as of
the date of this press release. RGP 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 of
this press release 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/20240327683592/en/
RGP Investor Contact: Jenn
Ryu, Chief Financial Officer (US+) 1-714-430-6500
jennifer.ryu@rgp.com
RGP Media Contact: Pat Burek
Financial Profiles (US+) 1-310-622-8244 pburek@finprofiles.com
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