Global IT services provider CTG Inc. (Computer Task Group) has acquired Tech-IT, an IT solutions provider and integrator, for $10.3 million. The all-cash transaction is expected to close later this month.
Tech-IT is based in Luxembourg -- a small European country, surrounded by Belgium, France and Germany. With approximately 50 employees, Tech-IT will begin operating as a subsidiary of CTG Luxemourg.
Tech-IT, founded in 2007, provides software and hardware services, including consulting, infrastructure, and software design and development, among other things.
CTG says Tech-IT generates about $20 million in annual revenue in such industries as include banking, financial services, and local government.
“The addition of Tech-IT’s strategic solutions and infrastructure services will further strengthen our established market position in Luxembourg by broadening our portfolio to offer complete end-to-end IT solutions,” said CTG President and CEO Bud Crumlish.
CTG has been growing its portfolio over the last year, and Crumlish says this acquisition is part of an effort to make focused investments on the highest-performing areas of CTG’s business. The firm also acquired French consulting and digital services company Soft Company less than a year ago.
According to Tech-IT’s Director, Hamid Kaddour, his company is looking forward to becoming part of a larger organization. Kaddor will assume a business development role within CTG Luxembourg, the company said.
CTG includes a number of the Fortune Global 500 companies on its client list. Most of its clients operate in high-growth industries in North America and western Europe. It currently employs more than 4,000 employees worldwide.
The transaction now faces approval from Luxembourg’s financial regulator.
CTG Revenues
CTG has been in growth mode. For the company's Q3 2018:
- Revenue grew 21.9% year-over-year to $90.3 million;
- European revenue, including the Soft Company acquisition, grew 56% and represented 34% of total revenue, compared with 27% of total revenue in year-ago quarter;
- Revenue from Solutions grew 32% year-over-year, expanding to over 32% of consolidated revenue
- Revenue from Staffing grew 17% year-over-year, primarily from our largest staffing clients, and represented 68% of total revenue
CTG shared those figures in an earnings release from October 2018.
