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On Assignment Inc. (NASD: ASGN) acquired The Cambridge Group Ltd., a Westport CT-based physician, clinical/scientific and information technology staffing firm.
Terms of the deal include $5.5 million in cash and a two-year earn-out provision.
On Assignment President and CEO Peter Dameris said the acquisition will strengthen core segments of its business and help expand gross margin.
"Cambridge is a 35-year-old firm that had approximately $11 million in revenues and 37% gross margins in fiscal year 2009," Dameris said in a press release. "The IT division of Cambridge contributed approximately 24% of total 2009 revenues, with the life sciences and physician divisions contributing approximately 73% and 3% respectively."
Cambridge's founder, Mike Salvagno, will remain with On Assignment as VP of clinical research.
On Assignment funded the purchase from cash on hand, and the acquisition should be accretive to On Assignment's net income in 2010.
In addition to its headquarters, Cambridge also had an office in Philadelphia.
Calabasas CA-based On Assignment provides life sciences, healthcare, IT and engineering staffing. It posted 2009 revenue of $416.6 million.