IT Staffing Report: Nov. 5, 2020

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Mastech adds to data/analytic business with acquisition of customer experience consulting company

IT staffing provider Mastech Digital Inc. (NYSE MKT: MHH) acquired AmberLeaf Partners Inc., a Chicago-based customer experience consulting company.

The transaction is valued at $14.0 million, with $9.5 million paid in cash at closing, subject to customary adjustments, and up to $4.5 million in deferred payments over the next two years. The deferred payments are contingent upon the acquired business achieving specific financial targets during the two years following the closing of the acquisition.

AmberLeaf will increase scale and add complementary capabilities to Mastech’s data and analytics business segment, branded as Mastech InfoTrellis.

Mastech in 2017 acquired the services division of InfoTrellis Inc., a Canada-based information management consulting and technology services company that provides project and consulting services in master data management, data integration and big data; the deal was valued at $55 million.

The AmberLeaf acquisition aims to strengthen and provide additional scope from which to implement Mastech InfoTrellis’ Enterprise Intelligence Hub strategy, and the combined businesses will provide customers with an expanded suite of service offerings, delivery capabilities and human capital across North America, EMEA, India and Southeast Asian countries.

“In 2017 we began our transformational journey to become a world-class provider of data management and analytics services,” said Mastech President and CEO Vivek Gupta. “The acquisition of AmberLeaf reinforces our commitment to this strategy by enhancing our ability to significantly scale our Data and Analytics business segment.”

Concurrent with the acquisition, Mastech entered into a revised credit facility with PNC Bank which increased its term loan facility by approximately $10 million to $17.5 million and increased its revolving loan facility by $7.5 million to $30 million.