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February 25, 2014
Miami, FL - February 25, 2014 - The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory, business transformation and technology consulting firm, today announced the acquisition of Technolab International Corporation's U.S., Canada and Uruguay operations.
This acquisition brings many strategic synergies to Hackett. The Hackett Group's EPM practice represents the Company's single largest practice area and last year was recognized as the # 1 influence partner in EPM and BI for North America by Oracle. Technolab adds over 90 highly skilled associates based primarily out of its Montevideo, Uruguay, Global AMS Center. The acquisition provides Hackett with new application management services and offshore development support capabilities which will strongly complement Hackett's existing EPM and BI offerings. Additionally, Technolab will expand Hackett's Oracle EPM capabilities in Western Canada and also add Public Sector expertise to Hackett's market leading Oracle EPM group.
Under the terms of the acquisition agreement, the Company will pay $4.0 million in cash and stock. The stock issued is subject to a four-year vesting provision. The Seller will have the ability to earn an additional $8.0 million in contingent consideration in cash and stock subject to an earn-out based on actual results achieved. At this time, we expect that the Technolab acquisition will add approximately $9.0 million to $11.0 million in annualized Application Management Services and EPM Consulting revenues to The Hackett Group.
Paulo Dominguez, founder & CEO of Technolab, will lead the new Global Application Managements Solutions effort for Hackett. "The Technolab - Hackett combination offers our clients a significantly expanded set of offerings along with our rich technology perspective and collaborative client service focus," stated Dominguez. "Having access to Hackett's proprietary intellectual capital allows us to further enhance our value proposition and serve clients in a way that is truly unique to Hackett."
"Technolab adds many strategic dimensions to our organization," said Ted A. Fernandez, Chairman and CEO of the Hackett Group. "In addition to a very talented group of principals and associates with strong industry and technology focus, we are acquiring a leader in the AMS area which strongly complement our existing offerings."
In light of this acquisition, the Company is updating its guidance for the first quarter of 2014 for total revenues to be in the range of $53.0 million to $55.0 million, and estimates pro forma diluted earnings per share to be in the range of $0.06 to $0.08.
Technolab Corporation has been delivering best in class Enterprise Performance Management (EPM) and Business Intelligence (BI) services and solutions for close to two decades. During that time, Technolab has won several Oracle Partner of the Year awards, delivered more than 500 implementations and upgrades and introduced industry innovations such as our Hyperion Managed Support Services and 24x7 Support Lab. Technolab is an Oracle Platinum Partner and Public Sector Pillar Partner and an Oracle approved EPM & BI SaaS solutions for Public Sector. To learn more, visit us at www.technolabcorp.com.
The Hackett Group (NASDAQ: HCKT) is an intellectual property-based strategic consultancy and leading enterprise benchmarking and best practices implementation firm to global companies. Services include business transformation, enterprise performance management, working capital management, and global business services. The Hackett Group also provides dedicated expertise in business strategy, operations, finance, human capital management, strategic sourcing, procurement, and information technology, including its award-winning Oracle EPM and SAP practices.
The Hackett Group has completed more than 13,300 benchmarking studies with major corporations and government agencies, including 93% of the Dow Jones Industrials, 87% of the Fortune 100, 87% of the DAX 30 and 58% of the FTSE 100. These studies drive its Best Practice Intelligence Center™ which includes the firm's benchmarking metrics, best practices repository, and best practice configuration guides and process flows, which enable The Hackett Group's clients and partners to achieve world-class performance.
This press release contains "forward-looking statements" and involves known and unknown risks, uncertainties and other factors that may cause The Hackett Group's actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that impact such forward-looking statements include, among others, the ability of our products, services, or practices mentioned in this release to deliver the desired effect, our ability to effectively integrate acquisitions into our operations, our ability to retain existing business, our ability to attract additional business, our ability to effectively market and sell our product offerings and other services, the timing of projects and the potential for contract cancellations by our customers, changes in expectations regarding the business consulting and information technology industries, our ability to attract and retain skilled employees, possible changes in collections of accounts receivable due to the bankruptcy or financial difficulties of our customers, risks of competition, price and margin trends, foreign currency fluctuations, changes in general economic conditions and interest rates and our ability to obtain debt financing through additional borrowings under an amendment to our existing credit facility, as well as other risks detailed in our reports filed with the SEC. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.