American CyberSystems Inc. struck a deal to acquire fellow information technology staffing provider Analysts International Corp. (NASD: ANLY) for approximately $35.0 million. The deal calls for ACS to acquire all outstanding shares of Analysts International for $6.45 a share.
The deal will make Analysts International a privately held company and wholly owned by ACS.
“The acquisition of [Analysts International] allows us to accelerate our plans for growth in specific desirable geographies and capitalize on marquee customer opportunities,” said ACS Chairman and CEO Raj Sardana. “The [Analysts International] legacy of service excellence will remain intact and will be a strong complement to ACS and our combined customer base.”
ACS ranks No. 36 on Staffing Industry Analysts’ list of largest U.S. staffing firms with U.S. staffing revenue of $366.0 million in 2012. It’s headquartered in Atlanta with offices in the U.S. Canada, Latin America and India. ACS also appears on the list of diversity staffing firms.
The company’s last major acquisition was its buy of Comforce in September 2012. Comforce had estimated revenue of $170 million in 2011.
ACS also owns HireGenics, a provider of independent contractor compliance and payrolling services.
For its part, Analysts International had revenue of $105.8 million in 2012. The company is based in Minneapolis and employs approximately 850 IT professionals, management and administrative staff, according to a recent regulatory filing. The company was incorporated in 1966.
An investment firm back in December called for management to consider selling the company.
“This merger is good for our customers, employees and shareholders,” Analysts International CEO Brittany McKinney said in a press release Wednesday. “By combining our strengths with the added capabilities and resources of ACS, [Analysts International] will continue to provide the same high value services our customers have come to expect from us, while expanding our offerings, delivery capabilities and geographic reach to better serve them. Our employees will become part of a larger organization that provides expanded career opportunities and a broader network of colleagues with a shared passion for customer service. And our shareholders will receive an immediate cash payment at a substantial premium to AIC's average recent stock price.”