Computer Task Group (CTG) has acquired a Paris, France-based IT consulting company as the staffing services provider looks to establish an expanded presence in European markets.
Buffalo, N.Y.-based CTG, No. 76 on the CRN Solution Provider 500, said Thursday's $16.5 million cash purchase of Soft Company will open up "significant" cross-selling opportunities in France's $40 billion IT services sector while also strengthening its positions in Belgium and Luxembourg.
Soft Company, with annual revenue of $30 million, has a team of 200-plus technology consultants with expertise in application development, data analytics and banking and insurance services delivery. The company will become a subsidiary of CTG Europe under the continued leadership of Moïse Torjmane, Léon Levy, and Serge Saada.
CTG's existing European business is a 3,250-employee organization that delivers application, compliance and managed services in markets such as the U.K., Belgium and Luxembourg. The solution provider works with such vendors as Microsoft, CA Technologies and Nintex, which was bought by private equity giant Thoma Bravo earlier this month.
Soft Company, with more than 320 employees according to its LinkedIn page, works with a number of technology companies including IBM, Red Hat, Oracle and Cloudera.
CTG expects the deal to immediately be accretive to its operating margin and earnings per share, excluding acquisition-related expenses. The transaction was not subject to regulatory approvals.
"The combined organization will also benefit from the ability to leverage the outstanding reputations of each company as we continue to deliver exceptional service that addresses our clients’ business and technology challenges," CTG President and CEO Bud Crumlish said in a prepared statement.
Crumlish has been at the helm of CTG since July 2016, when predecessor Cliff Bleustein resigned after only 15 months on the job. Then, in April 2017, the company announced that CFO Brendan Harrington would be stepping down after revenue fell more than 10 percent year-over-year. However, that same quarter, CTG reported a 7.5 percent increase in its European business.
Crumlish joined CTG in 1990 and since July 2001 has served as senior vice president and general manager of Strategic Staffing Services (SSS), CTG's largest business unit.
CTG reports its fourth quarter and fiscal year 2017 earnings on Feb. 20.