Charlotte, NC; September 25, 2007 - DecisionPoint International, a boutique Investment Bank providing merger and acquisition services to middle-market technology clients, announced today that its client, Edgewater Technology, Inc. (NASDAQ: EDGW, “Edgewater” or “Company”), a technology management consulting firm specializing in providing premium IT services, has completed an asset acquisition with Los Angeles-based Lynx Business Intelligence Consulting, Inc. (“Lynx”), a leading provider of professional services for the Corporate Performance Management (“CPM”) / Business Intelligence (“BI”) industry.
The acquisition is expected to:
Be immediately accretive to earnings;
Enhance Edgewater’s CPM/BI services expertise and reach;
Expand Edgewater’s geographical footprint to the West Coast; and
Be highly leveragable with the Company’s other business service offerings.
“The acquisition of Lynx will expand our Hyperion presence on the West Coast with local talent and enable us to deliver OutlookSoft CPM/BI service capabilities nationwide. In addition, we see a strategic opportunity to complement Edgewater’s rich Microsoft technology experience with Lynx’s OutlookSoft experience in order to expand our Microsoft-services practice to include a BI component,” stated Shirley Singleton, Chairman, President and Chief Executive Officer of Edgewater.
Headquartered in Los Angeles, CA, Lynx is a leading provider of professional services for the CPM/BI industry. Lynx has delivered services to organizations across various vertical markets including Financial Services/Banking, Consumer Packaged Goods, Entertainment and Retail.
“We are excited about the opportunity to join a leading technology and business consulting organization,” stated Binh Ly, Founder and President of Lynx. “We look forward to playing an integral role in the expansion of Edgewater’s national footprint and their CPM/BI offerings through the addition of our OutlookSoft expertise and our relentless commitment to unparalleled service excellence.”
The acquisition will be accounted for as an asset purchase with Lynx shareholders receiving total upfront consideration of $5.0 million, which includes $3.0 million in cash and approximately $2.0 million worth of Edgewater common stock (based on the average closing price of Edgewater’s common stock for the thirty days immediately preceding the acquisition). The common stock issued in the transaction is subject to a three-year lockup agreement. Additionally, the former Lynx shareholders will have the potential to earn additional cash consideration of up to $0.5 million based on achieving performance-based objectives over a 24-month period following the closing date.
About Edgewater Technology, Inc.
Edgewater Technology, Inc. is an innovative technology management consulting firm. Edgewater provides a unique blend of premium IT services by leveraging its proven industry expertise in strategy, technology and corporate performance management. Headquartered in Wakefield, MA, Edgewater goes to market by vertical industry and provides its clients with a wide range of business and technology offerings. For further information, visit www.edgewater.com.
DecisionPoint is a global leader in M&A advisory services for middle-market technology companies in the services, software, and communication sectors. For additional information on DecisionPoint, visit www.DecisionPointINT.com.
For further information, contact: Doug Ellis, Managing Partner; (704) 916-9070; DEllis@DecisionPointINT.com.