IT Staffing Report: March 5, 2020

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CTG buys crowdtesting provider StarDust

StarDust, an IT testing firm based in Marseille, France, was acquired by CTG (NASDAQ: CTG) in a transaction valued at $4.85 million. StarDust’s operations include crowdtesting.

Buffalo, New York-based CTG’s acquisition of StarDust is an all-cash transaction valued at approximately $4.58 million not including net cash at closing and potential future earn-outs.

StarDust has operations in France and in Montréal, Canada. It offers a range of testing services for websites, software, mobile applications and the Internet of Things.

Most important, the deal will bring crowdtesting capabilities to IT staffing and solutions firm CTG with 24/7 access to testers around the world, President and CEO Filip Gydé said.

“Crowdtesting will meaningfully differentiate CTG from many of our larger competitors, as we will now be able to provide faster turnaround and offer more flexible and cost-effective testing solutions to our clients,” Gydé said.

CTG already had a testing business and recently appointed Pieter Vanhaecke as global director of testing.

StarDust has an estimated $7 million in annualized revenue. Its founders and management team will remain with the combined company.