IT Staffing Report: Sept. 5, 2019

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Resources Connection acquires IT services firm; System One buys IT staffing provider

Resources Connection Inc. (NASDAQ: RECN), a professional staffing provider that operates as Resources Global Professionals, paid $30.6 million plus earnouts to acquire Veracity Consulting Group LLC, a Richmond, Virginia-based supplier of IT services.

“Veracity offers us an instant and credible foundation upon which to build our digital innovation offerings,” said Kate Duchene, CEO of RGP.

Founded in 2015, Veracity posted revenue of $21.4 million in 2018, representing a 58% year-over-year increase.

“We see an exceptional opportunity to accelerate Veracity’s momentum to grow and scale while delivering combined value to our and RGP’s client base around the world,” said Bhadresh Patel, CEO of Veracity.

The deal gives Irvine, California-based RGP a 100% stake in Veracity.

The company will operate as a subsidiary of RGP and its brand will remain in place as will its leadership team.

System One acquires Cohesion 

System One, which ranks among the largest IT staffing firms in the US, acquired IT staffing provider Cohesion through its ALTA IT Services LLC division, the company announced. The deal closed Aug. 5.

Cohesion has offices in Baltimore and Cincinnati. Its services include workforce solutions and agile consulting services to the government and private sectors, including infrastructure, application support, business intelligence, quality assurance and software testing, and agile consulting. It was founded in 1999.

“Our firms’ combined service portfolio enhances our IT expertise, offering our clients efficient deployment of technology,” said Troy Gregory, president and CEO of System One. “We are excited to invest in the growth of this exceptional team and expand our reach in IT.”

Cohesion will integrate into ALTA.

Terms of the transaction were not announced.