IT staffing and solutions provider CTG (NASD: CTG) today announced a definitive agreement to acquire Tech-IT PSF S.A., a Luxembourg-based consulting and IT solutions company, through its subsidiary CTG Luxembourg PSF S.A.

Founded in 2007, Tech-IT employs approximately 50 people in Luxembourg, including 40 consultants. It provides software and hardware services, including consulting, infrastructure and software design and development, infrastructure integration, project management and training.

The deal adds an estimated $20 million in annualized revenue to Buffalo, NY-based CTG and deepens its market penetration across banking, financial services, and local government sectors in Luxembourg, which collectively represent about half of Tech-IT’s revenue.

The proposed all-cash transaction is valued at about $10.3 million, not including potential future earn-outs, and adds an estimated $20 million in annualized revenue and approximately $1.5 million of cash and cash equivalents. The deal is expected to close this month and is subject to certain customary closing conditions, including regulatory approval from the Luxembourg regulatory entity.

Tech-IT will operate as a subsidiary of CTG Luxembourg. Hamid Kaddour, Tech-IT’s director, will assist with the integration of the firm and assume a business development role within CTG Luxembourg.

“CTG has strong client relationships in Luxembourg that will benefit from Tech-IT’s comprehensive portfolio of software, hardware, and integration services,” said Filip Gydé, current executive VP and president of CTG Europe. “Additionally, this proposed acquisition aligns with our strategic plan to further capitalize on the growth of our European operations and expand our portfolio of offerings to meet the market’s evolving IT needs.”

Gydé in December was elected president and CEO of CTG, effective March 1. He is taking over from Arthur W. “Bud” Crumlish, who is retiring after a 28-year career with the company.

CTG Europe’s offerings include application solutions, IT services management, testing, training and regulatory compliance. The company has a presence in Belgium, Luxembourg, France and the UK.

In the US, CTG ranks on the list of largest IT staffing firms.