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MSP M&A: Cegeka Acquires CTG

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European IT solutions company Cegeka is acquiring digital transformation solutions provider CTG for approximately $170 million.

This is technology M&A deal number 229 that ChannelE2E and MSSP Alert have covered so far in 2023. See more than 2,000 technology M&A deals for 2023, 2022, 2021, and 2020 listed here.

Cegeka Acquires CTG

Cegeka, founded in 1992, is based in Hasselt, Belgium. The company has 4,479 employees listed on LinkedIn. Cegeka’s areas of expertise include IT Infrastructure, CRM, Cloud Solutions, ERP, Agile Software Development, Collaboration & Portals, Agile Coaching & Training, Outsourcing, Managed Services, Digital & Mobile, and Business Intelligence.

CTG is based in Amherst, New York. The company has 3,601 employees listed on LinkedIn. CTG’s areas of expertise include IT consulting, Healthcare solutions and life sciences, Staffing services and vendor management, and Software development and integration.

The purchase of CTG amounts to $10.50 per share of common stock in an all-cash transaction.

The acquisition is part of Cegeka’s long-term strategic vision for growth and ambition, according to the company.

CTG had $325 million in 2022 revenue and $306 million in trailing 12-month revenue as of June 30, 2023. CTG operates in three segments: North America IT Solutions and Services, Europe IT Solutions and Services, and Non-Strategic Technology Services. Since 2018, CTG has transformed into a provider of recurring and higher-margin Solutions work, which has significantly expanded its gross margin, according to Cegeka.

After the deal closes, CTG will become a privately held company, and shares of CTG common stock will no longer be listed on any public market.

Cegeka Acquires CTG: Insider Commentary

Stijn Bijnens, CEO, Cegeka
Stijn Bijnens, CEO, Cegeka

Stijn Bijnens, CEO, Cegeka, commented:

"This merger is a logical next step in the continuous growth journey of Cegeka. In CTG, we find a partner that complements our customer and service portfolio and strengthens our capabilities and knowledge.”

André Knaepen, Chairman of the Board of Directors, Cegeka, said:

“Together, we can deliver enhanced value to customers across North America and Europe. As we proceed with the acquisition process, we look forward to welcoming the employees of CTG across India, Colombia, Europe, and North America.”

Filip Gydé, president and CEO, CTG, added:

“We are excited to enter into this transaction with Cegeka, which is a testament to the significant efforts we have undertaken to drive our transformation strategy to make CTG a pure-play digital IT solutions provider. At CTG, our mission is to drive better, faster results for our customers with high-value digital transformation solutions. In Cegeka, we are pleased to have found a partner that will enable us to accelerate this important work. We are confident that joining with Cegeka is in the best interest of our employees, will continue to drive the high-value services and solutions our customers have come to expect, and will deliver immediate value to our shareholders.”