Computer Task Group Inc. (NASDAQ: CTG), a provider of IT staffing and solutions based in Buffalo, New York, signed a deal to be acquired by Cegeka Groep nv, an IT solutions provider based in Hasselt, Belgium. 

The deal calls for Cegeka to pay $10.50 per share in an all-cash transaction for the publicly traded Computer Task Group, which also goes by CTG. The price represents an implied equity value of approximately $170 million. 

“Together, we can deliver enhanced value to customers across North America and Europe,” Cegeka Chairman André Knaepen said in a press release. “As we proceed with the acquisition process, we look forward to welcoming the employees of CTG across India, Colombia, Europe and North America.”  

The deal is subject to customary closing conditions and is expected to close later this year. 

CTG had revenue of $325 million in 2022, which includes $91.1 million in IT staffing revenue. The company has focused on building up its IT solutions work with North America IT solutions and services revenue of $84.0 million in 2022 and Europe IT solutions and services revenue of $149.9 million. 

CTG will no longer be publicly traded after the deal. 

“The combination of Cegeka and CTG is expected to create a global IT solutions organization with a robust portfolio of solutions supported by an expanded Global Delivery Network and innovative technologies and digital accelerators,” Filip Gydé, CTG President and CEO, wrote in an email to CTG employees. 

With the deal, Cegeka will have more than 9,000 employees in 18 countries and expects revenue to reach €1.4 billion in 2024. 

Two IT professionals launched CTG in 1966 as a small, privately held company in western New York state.  

Cegeka was founded in 1992 by Knaepen and posted revenue of €817 million (US$959 million) in 2022. It’s led by CEO Stijn Bijnens and employs more than 6,000 people with operations in 13 countries. 

Also today, CTG reported fourth-quarter revenue of $74.6 million, a year-over-year decrease of 9.9%.