The Hackett Group Acquires Technolab, a Leading Oracle Enterprise
Performance Management and Business Intelligence Application Management
*Acquisition expands The Hackett Group's offerings into Application
Maintenance Services and further defines Hackett as Enterprise Performance
Management and BI Powerhouse
*Guidance for first quarter 2014 updated to revenues of $53.0 million to
$55.0 million and pro forma EPS of $0.06 to $0.08
MIAMI -- 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 Servicesand EPM Consulting revenues to The Hackett
Paulo Dominguez, founder & CEO of Technolab, will lead the new Global
Application Management 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.
About The Hackett Group
The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic business advisory
and business transformation and technology consulting firm, is a leader in
best practice advisory, benchmarking, and transformation consulting services
including enterprise performance management and business intelligence,
strategy and operations, working capital management, shared services and
globalization advice. Utilizing best practices and implementation insights
from more than 10,000 benchmarking engagements, executives use The Hackett
Group's empirically-based approach to quickly define and implement initiatives
to enable world-class performance. Through its REL group, The Hackett Group
offers working capital solutions focused on delivering significant cash flow
improvements. Through its Archstone Consulting group, The Hackett Group offers
Strategy & Operations consulting services in the Consumer and Industrial
Products, Pharmaceutical, Manufacturing and Financial Services industry
sectors. Through its Hackett ERP Solutions group, The Hackett Group offers
business application consulting and application management services that help
maximize returns on IT investments. The Hackett Group has completed benchmark
studies with over 3,500 major corporations and government agencies, including
97% of the Dow Jones Industrials, 83% of the Fortune 100, 87% of the DAX 30
and 48% of the FTSE 100.
More information on The Hackett Group is available: by phone at (770)
225-7300; by e-mail at email@example.com.
This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 and involve 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
offerings mentioned in this release to deliver the desired effect, our ability
to effectively integrate the Technolab acquisitions into our operations, our
ability to retain its 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, 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 Company's
Annual Report on Form 10-K for the most recent fiscal year filed with the
Securities and Exchange Commission. 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.
The Hackett Group, Inc.
Robert A. Ramirez, CFO, 305-375-8005
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