Wavestone has fully acquired WGroup at a purchase price of $22 million, plus a conditioned additional consideration.
Wavestone, a French provider of management and information systems consulting services, has signed a deal for the acquisition of WGroup, an American IT management consulting firm. The deal complements Wavestone’s 2021 Strategic Plan and gives impetus to the company’s international advancement in the US. The 100% acquisition of WGroup came with a purchase price of $22 million as enterprise value apart from an approximately $8.5 million as additional consideration, which is conditioned by the company’s 2019 and 2020 performance. Wavestone will collect approximately $35 million in annual revenue in the US after the joining of WGroup, according to the company’s recent press release.
“WGroup has reached an inflection point after setting a foundation of 15 years of consistent organic growth providing world-class executive IT advisory for some of the world’s best clients. We’re an ambitious team with our eyes set on attaining market leadership in the American market. To do so, our company required to overall improve its value to clients and deliver around-the-globe capability, greater breadth of expertise, and more service lines. Today, the merger with Wavestone gives our company this opportunity,” said CEO of WGroup, Jeffrey Vail.
WGroup CEO will head Wavestone’s business in the US
The leadership team at WGroup is completely committed to the acquisition. After the post-merger integration program, Vail will lead Wavestone’s US business as he joins the company’s executive committee. Wavestone will see the consolidation of WGroup in its accounts as of August 1, 2019. Negotiated with Wavestone’s banks, an existing credit line was used to fund the acquisition. Wavestone has paid for the acquisition in cash, the company’s press release mentioned.
“In the consulting industry, the US is a bellwether market. Our company was impressed with WGroup’s ability to expand its client base consistently and with its leadership team. We’re eager for starting to work with WGroup’s team and thriving together, grabbing new opportunities in the US,” said CEO of Wavestone, Pascal Imbert.
WGroup is a nearly 100-member team, which includes upward of 50 permanent employees. Its experience extends across various industries such as retail and financial services, global manufacturing, media and entertainment, and healthcare and insurance.