BG Staffing Inc. (NYSE MKT: BGSF), a Plano, Texas-based staffing firm, acquired substantially all of the assets of Zycron Inc., effective April 3.

Zycron provides IT temporary staffing throughout the southeastern US region and selected markets across the country to Fortune 500 companies and government entities. The company had revenue of approximately $38.3 million in calendar year 2016. The deal included a combination of $19 million cash, $1 million (70,670 unregistered shares) of BG Staffing common stock, and certain earn-out provisions. Texas Capital Bank, as the lead agent, provided financing for the acquisition through a new revolver and term loan credit facility.

Zycron, founded in 1991, has offices in Nashville, Chattanooga, and Memphis, Tenn., as well as Dallas. The Zycron trade name will remain and operate as a separate brand under the BG Staffing Inc. umbrella. With the addition of the Zycron offices, BG now has operations in 56 offices and 25 states.

“The completion of the Zycron acquisition in the professional segment fits perfectly into our growth and expansion plans,” said BG Staffing President and CEO L. Allen Baker, Jr. “This most recent acquisition is accretive to value and allows us to enhance the cash flow we are building for our shareholders." 

BG Staffing provides staffing in three segments: professional, commercial and multifamily (front-office and maintenance personnel to the multi-family housing industry). Since 2009, the company has completed seven acquisitions. Most recently it acquired the Donovan & Watkins (D&W) division of the Willis Group in the first quarter of 2015 and substantially all of the assets of the Vision Technology Services family of companies in the fourth quarter of 2015.