Perficient, Inc. (NASDAQ: PRFT), a leading information technology consulting firm serving Global 2000 and other large enterprise customers throughout North America, announced that it acquired Dallas-based Nascent Systems LP, a $17 million annual services revenue business and technology consulting firm focused on Oracle ERP solutions, utilizing the Oracle E-Business Suite.
The transaction increased Perficient's annualized revenues to nearly $340 million and was expected to be accretive to earnings per share immediately.
We're pleased to add Nascent's Oracle EBS expertise to Perficient’s solutions portfolio in this well-structured transaction, said Jeffrey Davis, Perficient's chief executive officer and president at the time of the acquisition. Nascent is a well-run business that has realized consistent growth and impressive margins while building its reputation as a leading provider of Oracle ERP solutions to the world’s leading enterprises. Enterprises accustomed to engaging Perficient for our deep expertise across a broad solutions portfolio can now leverage our business and technology consultants for ERP implementations as well.
Given our existing leadership around Oracle CRM and EPM solutions, we view Oracle ERP as a significant cross-selling and growth opportunity within our existing client base," said Kathy Henely, Perficient's chief operating officer. “Nascent’s strong presence in the Texas, Oklahoma, Louisiana and Arkansas (TOLA) markets builds upon our already substantial footprint in those important markets, while their national delivery model and fully mobile workforce is something we’ll have the immediate capacity to leverage across our entire client base.
The acquisition of Nascent also:
Increased Perficient’s market presence in the TOLA markets;
Added more than 70 consulting, technology, sales and support professionals; and
Added client relationships with enterprise customers including Alpha Natural Resources, AMC Entertainment, Boardwalk Pipeline, Emerson Process Management, GENBAND, TD Ameritrade and many others.
All Nascent partners joined Perficient in key leadership roles. Co-Founder and Chief Executive Chris Wilson joined as a General Manager and reported directly to Don Kasica, vice president of Perficient’s Oracle operations. Nascent partners Stuart Massey, Mike Williamson and Joseph Hayes also joined Perficient.
Perficient is well known for its expertise across many technology platforms and is already perceived as one of the finest Oracle implementation partners in the country,” said Wilson. “Joining the Perficient team accelerates our collective opportunities for further growth and success.
The consideration paid in the transaction was approximately $18.1 million and included $11.3 million in cash and approximately $6.8 million worth of Perficient common stock (based on the average closing price of Perficient’s common stock on the NASDAQ Global Select Market for the thirty trading days immediately preceding the acquisition close per the terms of the acquisition agreement).
7 Mile Advisors acted as the exclusive sell-side advisor to Nascent Systems.