IT management, Mergers and Acquisitions, Vertical markets

RGP Acquires Veracity Consulting

Resources Global Professionals (RGP) has acquired Richmond,Virginia-based IT services and digital transformation company Veracity Consulting Group for $30.6 million.

The deal also includes potential additional payments based on longer-term performance, the company said.

Founded in 2015, Veracity is a fast-growing digital transformation firm that works with various Fortune 500 companies and healthcare organizations. The firm reached $21.4 million in revenue in 2018, up 58 percent over 2017.

RCP was founded in 1996 and functions as the operating arm of Resources Connection, Inc.

For RGP, the deal represents a step toward enhancing its digital capabilities, the company said. It will now be able to offer its clients comprehensive end-to-end solutions to clients by combining Veracity’s customer-facing offerings with its own experience in transforming the back office, RGP said in a prepared statement.

Kate Duchene, CEO of RGP, said:

“I am beyond thrilled to welcome Veracity into the RGP family. With its proven track record of helping clients solve problems using digital solutions, Veracity offers us an instant and credible foundation upon which to build our digital innovation offerings. Most importantly, the cultural alignment here is compelling and undeniable – at its core, Veracity is a people-first business, just like RGP.”

Bhadresh Patel, CEO of Veracity also commented:

“We see an exceptional opportunity to accelerate Veracity’s momentum to grow and scale while delivering combined value to our and RGP’s client base around the world.”

Veracity will operate as a wholly-owned subsidiary of RGP. The Veracity brand and operations will remain intact, and the company’s leadership team will work in close partnership with RGP to scale healthy growth for Veracity in the coming years, the companies said.