US-based CTG (NASD: CTG) announced yesterday that it acquired Paris-based Soft Company, a consulting and engineering firm with expertise in both business and information systems. The all-cash transaction is valued at USD 16.5 million, not including potential future earnouts, for Soft Company’s USD 30 million in annualised revenue and approximately USD 3.5 million of cash and equivalents as of 31 December.

CTG is an IT services provider whose staffing services places it among the top 25 largest US IT staffing firm’s according to Staffing Industry Analysts.

Soft Company has more than 200 consultants working in specialized business and technical offerings, including banking, insurance, application development and data analytics.

Plans call for Soft Company to operate as a subsidiary of CTG Europe and it will continue to be led by the current management team of Moïse Torjmane, Léon Levy and Serge Saada.

“The acquisition of Soft Company is a significant milestone in CTG’s growth strategy as it expands our portfolio of services and opens up an important new and growing market in France,” Bud Crumlish, CTG president and CEO, said. “More specifically, this transaction broadens CTG’s strong existing market positions in Belgium and Luxemburg, while providing us with increased scale and offerings to serve a highly diverse group of European clients.”

Crumlish continued: “The combined organization will also benefit from the ability to leverage the outstanding reputations of each company as we continue to deliver exceptional service that addresses our clients’ business and technology challenges.”

Bud Crumlish appears on SIA’s 2018 Staffing 100 list of most influential people in staffing, which was released this week.

The deal will extend CTG’s European presence in the USD 40 billion IT services market in France and offers cross-selling opportunities across a combined client base, according to CTG.

Soft Company is profitable and, excluding customary acquisition-related expenses, the deal is expected to be immediately accretive to CTG’s operating margin and earnings per share. The boards of directors of both companies have approved the deal, and the acquisition was not subject to any regulatory approvals.

“CTG’s European expansion into the French market through this acquisition supports our vision of being a significant IT services provider in all of Europe,” Filip Gydé, senior VP and general manager of CTG Europe, said. “We know that it is not enough to only remain in a position of strength in our current markets, but we must also look to expand to larger markets which we currently do not serve. As our European business continues to grow, it was strategically important to find a partner in France that shared our vision and could provide additional services to help our clients navigate the digital world.”

CTG Europe offerings include application services, testing services, IT service management, and regulatory compliance. The company has a presence in Belgium, Luxembourg and the United Kingdom as well as with European Union institutions. CTG currently employs approximately 800 people in Western Europe and 3,250 companywide.