Microsoft Dynamics Partner of the Year
WAKEFIELD, Mass., Jan. 4, 2010 (GLOBE NEWSWIRE) — Edgewater Technology,
Inc. (Nasdaq:EDGW), “Edgewater” or the “Company,” a technology management
consulting firm specializing in providing specialty IT services, today
announced that it has acquired Alabama-based Fullscope, Inc. (“Fullscope”),
an award-winning Microsoft Dynamics consulting firm. The acquisition was
completed after the close of business on December 31, 2009. Fullscope’s
operating results will be combined with those of Edgewater’s beginning on
January 1, 2010 and the transaction is expected to be accretive to earnings
per share in 2010.
Known for providing discrete and process manufacturing Enterprise Resource
Planning-related (“ERP”) consulting services in the upper mid-market,
Fullscope has garnered several prestigious awards in the Microsoft Dynamics
space:
* 2009 Microsoft Dynamics Manufacturing Partner of the Year
* 2009 Microsoft Dynamics Reseller of the Year Award for the United
States
* 2008 Microsoft Partner of the Year for Microsoft Dynamics AX
* 2007 Microsoft Partner of the Year for Microsoft Dynamics AX
“Russell Smith, John Scandar and the entire Fullscope team are a great
addition to the Edgewater family,” commented Shirley Singleton, Edgewater’s
Chairman, President and Chief Executive Officer. “Fullscope extends the
reach of our strategic data and analytics offerings into the upper middle
market. We see tremendous opportunity in this market segment from a
combination of updating and upgrading existing ERP platforms, many of which
have been untouched since the 1999-2000 timeframe, and implementing the same
Enterprise Performance Management
(“EPM”) capabilities we have been providing to the Global 2000.”
Fullscope provides technology consulting services and software as a National
Systems Integrator with Microsoft throughout the United States and Canada.
Its solutions are targeted at improving operational efficiencies, increasing
the speed and flexibility of manufacturing operations and providing
real-time insight into production processes.
Fullscope has delivered its services to organizations across various
vertical markets including Manufacturing, Consumer Packaged Goods and Life
Sciences.
“We are excited about the opportunity to combine our resources and expertise
with those of Edgewater,” stated Russell Smith, Fullscope’s President and
Chief Executive Officer. “Our Microsoft Dynamics AX platform and service
offerings balance well within the other product-based software stacks
currently being serviced by Edgewater. We look forward to capitalizing on
our combined strengths to offer tremendous insight and value to customers.”
On June 25, 2009, Fullscope sold to Microsoft Corporation (“Microsoft”) two
software product add-on modules to Microsoft Dynamics AX 2009 (the “Process
Development Business Unit”). That transaction includes provisions for
payments to be made by Microsoft to Fullscope through June 25, 2011 and for
several support-related statements of work to be performed by Fullscope and
funded by Microsoft through various dates ending in August 2011
(collectively referred to as the “Process Development Business Unit
Payments”).
Excluding the Process Development Business Unit, Fullscope generated
approximately $12.6 million in annualized service revenue and $9.1 million
of software resale revenue in the most recent twelve-month period.
Under the terms of the merger agreement, Fullscope shareholders will receive
total upfront cash consideration of $12.5 million, subject to net working
capital adjustments to be calculated post-closing. In addition, the
transaction includes an earnout agreement under which positive net income,
if any, generated by Fullscope from the Process Development Business Unit
Payments will be passed through and paid to the former Fullscope
stockholders. It is anticipated that the Process Development Business Unit
Payments will be in the range of $2.0 million to $2.5 million.
DecisionPoint International, a boutique technology investment bank, served
as an advisor to Edgewater on this transaction.
About Edgewater Technology, Inc.
Edgewater is an innovative technology management consulting firm. We provide
a unique blend of specialty IT services by leveraging our proven industry
expertise in strategy, technology and enterprise performance management.
Headquartered in Wakefield, MA, we typically go to market both vertically by
industry and horizontally by product and technology specialty and provide
our clients with a wide range of business and technology offerings. To learn
more, visit www.edgewater.com or call 800-410-4014.
The Edgewater Technology logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3783
Safe Harbor for Forward-Looking and Cautionary Statements
This Press Release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, including
statements made with respect to Fullscope’s anticipated future revenue and
profitability. These forward-looking statements represent the company’s
present expectations or beliefs concerning future events. The company
cautions that such statements are necessarily based on certain assumptions
which are subject to risks and uncertainties, including, but not limited to,
changes in general economic and business conditions and changing competition
which could cause actual future results to differ materially from those
indicated herein. Further information on these risk factors is included in
the company’s filings with the Securities and Exchange Commission.
Although we believe that the expectations in the forward-looking statements
are reasonable, we cannot guarantee future results, levels of activity,
performance, growth, earnings per share or achievements.
However, neither we nor any other person assumes responsibility for the
accuracy and completeness of such statements. We are under no duty to update
any of the forward-looking statements after the date of this Press Release
to conform such statements to actual results.
