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BG Staffing acquires mid-Atlantic IT staffing firm

September 29, 2015

BG Staffing Inc. (NYSE: BGSF), a Plano, Texas-based staffing firm, acquired substantially all of the assets of the Vision Technology Services family of companies (VTS). Based in the Baltimore area, VTS provides IT temporary staffing talent and project management services to companies throughout the mid-Atlantic region and selected markets nationwide.

The deal closed Sept. 28. The purchase price is up to an aggregate of $20.75 million, including $10.0 million paid at closing and earn-out payments up to an aggregate of $10.75 million, provided certain conditions are met, over a three year period following the acquisition date.

VTS had revenues of approximately $33.2 million in 2014 based upon preliminary unaudited information.

Vision Technology Services will operate as a separate brand under the BG Staffing Inc. umbrella, and its employees will remain with the firm.

“The completion of the accretive Vision Technology Services acquisition in the IT segment fits perfectly into our growth and expansion plans,” said BG Staffing President and CEO L. Allen Baker, Jr. “It will allow us to move closer to our goal of generating $100 million in revenue from the IT segment — and to enhance the cash flow portfolio we are building for our shareholders.

BG Staffing currently has operations in 40 offices and 15 states.

“We look forward to expanding our overall footprint (into Maryland and the mid-Atlantic) and adding additional IT skill sets,” Baker said. “It is our goal to accretively and meaningfully increase our adjusted EBITDA annually over the next several years.”

BG Staffing this year added office staffing services with the acquisition of the Donovan & Watkins division of the Willis Group, which provides finance/accounting staffing and administrative/clerical staffing.

BG Staffing provides staffing solutions to a variety of industries through four divisions: IT; light industrial; office; and multi-family, which provides front office and maintenance personnel on temporary basis to apartment communities. It ranks on Staffing Industry Analysts' lists of largest US staffing firms and fastest-growing US staffing firms.