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EPAM Systems Acquires Alliance Global Services
- Not Disclosed
- EPAM Systems (NYSE: EPAM) announced today its acquisition of software solutions provider Alliance Global Services, for an undisclosed amount.
- Alliance, headquartered in Conshohocken, PA, has more than 1,200 employees and provides software design, development and quality management services to clients across multiple verticals.
- EPAM, recently listed as a “Star Performer” and “Major Contender” in Everest Group’s Peak Matrix for IT Outsourcing, was founded in 1993 and has locations in more than 20 countries.
- With this acquisition, EPAM is revising its full year 2015 revenue guidance and expects year-over-year revenue to total $905 million in GAAP reported revenue. Full year 2015 non-GAAP diluted EPS is expected to be at least $2.66.
A Good Fit with Strong Potential
Joining a Strong Team: Both Alliance and EPAM are global providers of product development and other outsourced services – an industry where achieving size can be key to differentiating one company from its competitors. EPAM has completed eight other acquisitions in the last five years, and is very richly valued. If integrated properly, this acquisition offers plenty of opportunity for both sides.
- Growing Into Sale Positioning: Alliance CEO John Castleman is well respected for personally directing the growth of the company’s India operations and moving Alliance up the value chain. Growing the company was key to driving buyer interest.
- Latest of Much M&A History For Alliance: Alliance Global Services has a long history of M&A. The company is one of two companies resulting from the August 2008 split of Alliance Consulting, an advisory firm focused on the health care market that was founded in 1994. Before the split, Alliance Consulting was acquired in 2002 by Safeguard Scientifics and sold component operations to Logicalis in 2006. This transaction will pair the company with a like-minded strategic that is well-equipped to help it grow.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.