IRVINE, Calif.--(BUSINESS WIRE)--
Resources Connection, Inc., (NASDAQ: RECN), a multinational business consulting firm operating as Resources Global Professionals (‘RGP’), today announced, as part of an effort to expand and grow its European business, it has acquired taskforce - Management on Demand AG (‘taskforce’) for initial consideration of €6.0 million (approximately $7.1 million), in a combination of cash and restricted stock, plus an earn-out based on performance in calendar 2017, 2018 and 2019.
taskforce is a German professional services firm, founded in 2007, that provides clients with senior interim management and project management expertise. The acquisition of taskforce, an industry leader in the German market with a strong client and consultant base, enhances RGP’s ability to service its global clients and offer more integrated solutions. For the twelve months ended December 31, 2016, taskforce revenues were approximately €12 million (approximately $13.3 million).
Kate Duchene, President and CEO of RGP said, “Based upon current economic forecasts, we believe there will be a growing need for services both in Germany and the rest of the European market of the type that RGP provides. The acquisition of taskforce significantly strengthens our presence in the vital German market and our ability to serve clients there and throughout the rest of Europe. In addition, both we and taskforce executives believe that the depth and breadth of capabilities RGP brings can and will deliver added value to taskforce clients. RGP has collaborated with taskforce on a number of projects in recent years, and our experience working together has convinced us that this acquisition is right for our clients and for our investors.”
Mark Campbell, Senior Vice President of RGP in Europe also commented: "This is an exciting move for our growing European practice. taskforce has a very strong brand in the German market, the second largest consulting market in Europe. Together we will focus on continuing to build that brand, whilst leveraging our combined capabilities for our clients. RGP understands that successful acquisitions in professional services require a secure and shared culture. After many months getting to know each other, we are convinced that we have that shared culture. The alignment of business models and values will enable our teams to continue to do what they do best – deliver for our clients.”
taskforce will continue to operate under its existing brand name, while being clearly aligned to RGP. Jens Christophers and Lennart Koch will remain joint CEOs of taskforce and will focus on developing and growing the business including leveraging the benefits and resources of being part of a much larger organization. They will report to Campbell and serve as part of the RGP Leadership team in Europe.
ABOUT RGP
RGP, the operating subsidiary of Resources Connection, Inc. (NASDAQ: RECN), is a multinational business consulting firm that helps leaders execute internal initiatives. Partnering with business leaders, RGP drives internal change across all parts of an enterprise – accounting; finance; governance; risk and compliance management; corporate advisory; strategic communications and restructuring; information management; human capital; supply chain management; and legal and regulatory.
RGP was founded in 1996 within a Big Four accounting firm. Today, RGP is a publicly traded company with over 3,300 professionals, annually serving over 1,800 clients around the world from 67 practice offices.
Headquartered in Irvine, California, RGP has served 87 of the Fortune 100 companies.
The Company is listed on the NASDAQ Global Select Market, the exchange's highest tier by listing standards. More information about RGP is available at www.rgp.com. (RECN-F)
Certain statements in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “remain,” “should” or “will” or the negative of these terms or other comparable terminology. Such statements and all phases of the Company’s operations are subject to known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievements and those of our industry to differ materially from those expressed or implied by these forward-looking statements. Risks and uncertainties include the anticipated benefits of the acquisition may not be realized, seasonality, overall economic conditions and other factors and uncertainties as are identified in our most recent Annual Report on Form 10-K and our other public filings made with the Securities and Exchange Commission (File No. 0-32113). Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business or operating results. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend, and undertakes no obligation, to update the forward-looking statements in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, unless required by law to do so.
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