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Consulting Firm BGSF Inc Acquires Arroyo Consulting

Jigsaw puzzle with copy space.

Jigsaw puzzle with copy space.

Consulting, managed services, and professional workforce solutions provider BGSF Inc has acquired nearly all of the assets of Arroyo Consulting. Financial terms of the deal were not disclosed.

This is technology M&A deal number 113 that ChannelE2E and MSSP Alert have covered so far in 2023. See more than 2,000 technology M&A deals for 2022, 2021, and 2020 listed here.

About BGSF and Arroyo

BGSF is based in Plano, Texas. The company has 409 employees listed on LinkedIn. BGSF’s areas of expertise include Multifamily, Information Technology, Administrative and Clerical, Light Industrial, Finance & Accounting, Marketing, and Commercial Real Estate.

Arroyo Consulting, founded in 2008, is based in Nashville, Tennessee. The company has 134 employees listed on LinkedIn. Arroyo’s areas of expertise include Software, Outsourcing, .Net, Java, Testing, Management, Nearshore, Agile, SAFe, DevOps, Srum, Architecture, Offshore, India, and Onshore.

Arroyo, which has operations in the US, Colombia, and India, reported unaudited revenues of approximately $16.2 million in fiscal year 2022.

The acquisition of Arroyo adds global delivery capabilities and enhances both BGSF’s nearshoring and offshoring offerings, the company said. It also expands BGSF’s presence into Latin America and India, and adds nearshore and offshore software development locations in Medellin, Colombia and Telangana, India, according to the company.

More than 300 employees from Arroyo will join BGSF, the company said.

BGSF Acquires Arroyo: Executive Commentary

Beth Garvey, BGSF’s Chair, President, and Chief Executive Officer
Beth Garvey, BGSF’s Chair, President, and Chief Executive Officer

Beth Garvey, BGSF’s Chair, President, and Chief Executive Officer, commented:

“We are excited to add this strategic platform to BGSF, which allows us to offer software development and IT consulting services and solutions using resources located outside of the U.S. Our customers have been asking for offshore and nearshore solutions, and we know that the Arroyo team will provide us with the people and expertise needed to expand our high-value business consulting and managed service platforms.”

Luis F. Sanchez, GM of Arroyo Consulting, said:

“Arroyo and BGSF are identical in our commitment to our employees and our clients. We have a scalable model that is addressing the growing demand for nearshore and offshore resources. Combining the USA market presence of BGSF, with the global technical footprint of Arroyo, creates a powerful team in the IT consulting industry. I know that together we will be stronger and that the great culture that we have built at Arroyo will be made even stronger through this acquisition.”

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