The U.S. Securities and Exchange Commission (SEC) has awarded ICF, a global consulting and digital services provider, a potential ten-year, $68 million task order to deliver enterprise-wide database administration services, the company announced on Thursday.
“We are excited to bring an innovative approach to delivering improved customer satisfaction, enhanced transparency and predictability through automation, expertise and best practices,” said Mark Lee, senior vice president of ICF.
The company will supply data services, data administration and database management support for the agency’s environments and manage migrations between these environments. The single-award task order has a term of one base year and nine option years and is part of the SEC’s “OneIT” (OIT) IDIQ sourcing vehicle, which streamlines the process to procure IT services and solutions across the agency.
“We are honored to support the SEC and to help them meet their mission-critical, enterprise-wide needs,” added Lee.
With the purchase of ITG in Jan. 2020, ICF will utilize its acquired solutions to expedite the task order. ICF has entered into the definitive agreement with a purchase price of $255 million, funded by ICF’s existing credit facility.
John Wasson, ICF president and chief executive officer, said, “This transaction is aligned with our strategy to complement organic growth with acquisitions that strengthen ICF’s position in key growth areas… we see significant revenue synergies by combining ICF’s domain expertise, robust business development platform and contract vehicles with ITG’s best-in-class qualifications, performance track record, deep technology partnerships and leading platform expertise.”
ICF projected the net present value of the tax benefit of this transaction to be approximately $33 million. ITG’s EBITDA margin is in the mid-teens. Following the completion of this acquisition, the company’s leverage ratio is expected to be less than 2.7.
Commenting on its combination with ICF, JC Chidiac, ITG’s chief operating officer said, “As one team, ICF and ITG bring highly complementary capabilities and will be uniquely positioned to architect and implement technology platforms that drive the strategic transformation agencies need to meet their new mandates. Importantly, this is an excellent cultural fit for our collaborative, entrepreneurial organization, which was a key determinant in our decision to join together with ICF.”