CDI acquires IT staffing company
EdgeRock operates a national client platform with headquarters in Boston, MA, and additional offices in Tampa, FL, and Phoenix, Arizona. The acquisition will be immediately accretive to CDI earnings, excluding certain one-time costs incurred in completion of the transaction.
Founded in 2005, EdgeRock provides clients with crucial Enterprise Resource Planning (ERP) talent needed to fully optimize the value of their ERP technology investments.
This acquisition provides CDI with a national platform for highly-skilled specialist IT staffing with proven delivery capabilities and longstanding relationships with leading consultants to SAP, Oracle and PeopleSoft projects. In addition, EdgeRock has an expanding practice serving other specialized IT skill sets, including business intelligence and data analytics.
EdgeRock will become a division of CDI and continue to operate under the EdgeRock Technology Partners brand name. The current EdgeRock leadership team will continue to manage day-to-day operations of the business.
"The acquisition of EdgeRock represents an important step in our expansion of CDI capabilities to more specialized areas of IT staffing," said Scott J. Freidheim, chief executive officer and president of CDI. "Working with EdgeRock, and leveraging their strong access to experienced talent in ERP and other specialized technology sectors, we can better meet growing demand from existing and new clients to realize greater value from their technology investments."
Total transaction consideration at closing was approximately $31m in cash, subject to standard working capital adjustments. CDI will pay up to an additional $4m of cash consideration contingent on future operating performance. For the 12 months ended August 31, 2015, EdgeRock recognized approximately $44m in revenue, with gross profit and operating margins well above CDI averages.