News :: Go Back ::
Kuhn Capital Initiates Perificient Acquisition of Compete
CHICAGO, IL September, 2000 — Perficient Inc. (Nasdaq: PRFT), announced today that it has closed the acquisition of Compete, Inc., a leading privately-held Internet consultancy focused on IBM’s (NYSE: IBM) market-leading WebSphere™ product line. Compete, with offices in Chicago, San Francisco, Raleigh, N.C. and Auckland, New Zealand, and estimated 1999 revenues of $6.3 million, is profitable.
Compete has performed consulting projects for leading corporate and government clients including American Express, Smurfit Stone Container, Canada Trust, Charles Schwab, US Web/CKG and SBC. The value of the transaction is between $34.6 million and $63.2 million depending on certain operating targets being met. Sam Fatigato, Compete’s CEO will become Perficient’s COO.
The terms of the agreement call for Perficient to issue 1.1 million shares of Perficient stock to Compete, along with $3.5 million in cash and a note for $2.5 million. The agreement also provides for Compete’s shareholders to receive up to an additional 1.1 million shares of Perficient stock if certain conditions are satisfied in the first year following the closing of the transaction.
Based upon Perficient’s closing price of $26 on February 16, 2000, the value of the non-contingent consideration is approximately $34.6 million. If the additional conditions are satisfied, the value of the transaction, based upon the February 16 closing price, could be $63.2 million. The deal, subject to various conditions including approval by Perficient’s shareholders, is expected to close in the second quarter. Kuhn Capital of Chicago initiated this transaction and advised Perficient.
Perficient (NASDAQ: PRFT) enables high growth Internet software companies to focus on their core business and achieve success by providing them dedicated virtual professional services organizations (or V-PSOs). Perficient’s V-PSOs provide an ideal outsourced services capability that combines the full project management and international scope of a large e-commerce systems integrator with the partner loyalty and dedicated staff of a traditional subcontractor. Perficient has relationships with Internet industry leaders such as Vignette Corporation, IBM, Motive Communications and Plumtree Software.
:: Go Back ::