Computer Task Group Inc., 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 USD 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 USD 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 2022 revenue of USD325 million, which includes USD 91.1 million in IT staffing revenue. The company has been focusing on building up its IT solutions work with North America IT solutions and services revenue of USD 84.0 million in 2022 and Europe IT solutions and services revenue of USD 149.9 million.

CTG will no longer continue to 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.  

CTG was founded in 1966 as a small, privately held company in western New York by two IT professionals.

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

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