Exervio Acquired By Perficient

7 Mile Advisors Acted As The Exclusive Sell-Side Advisor To Exervio In Their Sale To Perficient

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Perficient, Inc. (NASDAQ: PRFT), a leading information technology consulting firm serving Global 2000 and other large enterprise customers throughout North America, acquired Exervio, Inc., a Charlotte-based business and management consulting firm focused on program and project management, process improvement and data/business analytics with approximately $13 million in annual revenues. The transaction was expected to increase Perficient’s  annualized revenues to more than $245 million – with nearly 1,450 consulting, technology, sales and support professionals. The acquisition was expected to be accretive to earnings per share immediately.

“Exervio’s high-value portfolio of management consulting skills significantly enhances our existing business consulting qualifications and offers strong pull-through potential for our custom and packaged application development, implementation and integration services,” said Jeffrey Davis, Perficient’s chief executive officer and president. “Exervio is a well-run business with a demonstrated record of growth and one that historically has coupled solid bill rates with strong utilization to deliver attractive gross margins.”

“We’re excited about Exervio’s meaningful presence in both the Charlotte and Atlanta markets,” said Kathy Henely, Perficient’s chief operating officer. “Additionally, establishing management consulting as a core offering in our consulting portfolio is a strategic development that broadens our relevance to potential enterprise clients and further positions Perficient as a valued partner to existing customers.”

The acquisition of Exervio also:

• Increased Perficient’s market presence in the southeastern United States, adding offices and local consulting resources in the Charlotte and Atlanta markets;
• Expanded Perficient’s presence in the Dallas market;
• Added nearly 100 consulting, technology, sales and support professionals; and
• Added client relationships with enterprise customers including AT&T, Bank of America, Boy Scouts of America, Coca Cola, Duke Energy, Family Dollar, Lowe’s, Piedmont Natural Gas, Wells Fargo and many more.

“Joining Perficient presents tremendous opportunity for our company and our customers,” said Jon Nance, Exervio’s chief executive. “It will not only accelerate the success and momentum of our business but also provide our clients access to a much broader array of solutions and services.”

Exervio co-founders Jon Nance, Mark Heisig and Edward Pounds each joined Perficient in key leadership roles.

The consideration paid in the transaction was approximately $13.6 million and included $7.6million in cash and approximately $6.0 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). $3.4 million of the total consideration was subject to earnout and working capital provisions.

7 Mile Advisors acted as the exclusive sell-side advisor to Exervio.