Appetite for IT services providers focused on government agencies continues to be strong. Given the large and long term nature of contracts in the space, there’s no surprise that corporates and private equity firms alike or hunting for opportunities.
Recently publicly traded IT firm ICF announced it was acquiring IT services contractor ITG for $255 million. ICF’s president and CEO, John Wasson, provided his insights on the acquisition.
“This transaction is aligned with our strategy to complement organic growth with acquisitions that strengthen ICF's position in key growth areas,” said Wasson. “IT modernization and cloud together is estimated to be approximately a $21 billion federal market and one in which ICF already has gained traction through organic expansion.”
ICF’s senior vice president and corporate development Eric Hamann further added, “The leadership and incredible talent at ITG is what really sets them apart. There was an immediate connection and shared vision of what was possible together, that both teams really rallied around.” Hamann continues “We could not be more excited to partner with the ITG team to have meaningful and positive impacts on agency missions through the deployment of best-in-class technologies and look forward to helping advance the IT modernization agenda government-wide.”
The deal is expected to provide tax benefits of $33 million.