- ASGN Incorporated (NYSE: ASGN) announced it is buying GlideFast Consulting in a $350 million deal. These are the details.
ASGN Incorporated (NYSE: ASGN) – a leading provider of IT services and solutions, including technology and creative digital marketing, across the commercial and government sectors – announced that it has signed a definitive agreement to acquire GlideFast Consulting LLC, an elite ServiceNow Partner and leading IT consulting, implementation and development company, for $350 million in cash. The deal, which is subject to customary closing conditions, is expected to close in early July 2022.
Launched in 2015 and based in Waltham, Massachusetts, GlideFast provides tailored solutions and professional services for ServiceNow implementations, integrations, managed support and application development. With over 1,800 certifications and 1,500 completed ServiceNow projects, GlideFast was recently named the 2022 ServiceNow Americas Elite Segment Partner of the Year.
GlideFast’s experienced team of more than 350 consultants across the United States, Canada, and India will become part of Apex Consulting Services. And ServiceNow is quickly becoming the go-to operating system of enterprises worldwide looking to optimize their processes and digitize their entire businesses. The cloud-based digital workflow platform saw 30.5% revenue growth in the first quarter of 2022 on a constant-currency basis and is anticipating similar topline growth in the second quarter.
Supported by an active pipeline and over 150 active customers, GlideFast is expected to generate about $95 million in revenues for the full year of 2022 and EBITDA margins in the mid-teens. And GlideFast’s results will be included in ASGN’s results from the date of acquisition.
For 2023, GlideFast estimated revenue growth of approximately 30% over 2022 and EBITDA margins in the mid-teens. And these estimates do not include any revenue synergies related to ASGN’s current pipeline of opportunities.
With a total addressable market for the ServiceNow platform estimated at approximately $190 billion by ServiceNow, there is a long runway ahead for the combined companies. And like that of Apex Systems, GlideFast’s client base is across multiple industry verticals, including TMT (Telecom, Media, Technology), Financial Services, Consumer and Industrials, Business & Government Services and Healthcare.
Updates To The Previously-Announced Financial Estimates For Q2 2022
ASGN also reconfirmed that it expects revenues for the second quarter of 2022 will be within its previously-announced range of $1.108 billion to $1.128 billion. Plus it also expects Adjusted EBITDA for the quarter will exceed the high-end of its previously-announced range of $135 million to $140 million mainly as a result of an estimated higher mix of commercial consulting revenues.
KEY QUOTES:
“Consistent with our three-year strategic growth plan, our acquisition of GlideFast supports ASGN’s commitment to acquire in-demand commercial consulting companies whose growth, combined with anticipated revenue synergies and the organic growth of our underlying business, will bring ASGN closer to our goal of $6 billion in revenues by 2024. By aligning our current IT consulting offerings with that of GlideFast’s expertise, we will jumpstart our ServiceNow business within Apex Consulting Services and immediately gain access to an industry-leading salesforce and consulting team. Together, we will ensure that ASGN’s commercial client base has the right talent to push forward the next generation of enterprise business process modernization.”
— ASGN Chief Executive Officer Ted Hanson
“We look forward to welcoming GlideFast to ASGN and together building a world-class ServiceNow consulting team. With significant client synergies along with the cultural similarities amongst our two businesses, we will quickly and strategically scale GlideFast’s operations within our current customer base, while at the same time leverage their value-added services and proven track record to build upon our growing new business pipeline.”
— ASGN President Rand Blazer
“GlideFast is the 2022 Global Elite Partner of the year. We are excited to continue to expand our ServiceNow practice by delivering top-notch implementation services to ASGN’s Fortune 1000 customers. This investment from ASGN will greatly enhance our ability to serve the ServiceNow marketplace.”
— GlideFast CEO Michael Lombardo
