Edgewater acquires M2 Dynamics
Edgewater Technology, Inc. (EDGW) of Wakefield, MA announced on December 22 that it has acquired the assets of M2 Dynamics Inc. (“M2”). M2 is an Oracle Platinum Partner providing Oracle Enterprise Performance Management (“EPM”) and Business Intelligence (“BI”) solutions and services primarily to the West Coast and southern regions of the United States.
M2 will join Edgewater Ranzal in providing clients with IT consultancy services specializing in Business Analytics and encompassing EPM, BI and Big Data solutions.
“We have been working on the M2 transaction for several months and are pleased to complete this highly complementary acquisition. The acquisition of this key Oracle EPM asset represents another important step in our strategy to provide the full range and breadth of service delivery that our customers are demanding,” said Shirley Singleton, Edgewater’s chairman, president and CEO. “We expect the acquisition will be accretive to 2016 earnings per share, and will provide us with increased scale to further strengthen our existing foundation and enhance our ability to drive growth and value creation for stockholders.”
“We are pleased to see Edgewater Ranzal and M2 come together,” said Hari Sankar, group vice president, product management, Oracle. “The combination will provide depth of expertise covering the full range of Enterprise Performance Management offerings across cloud and on-premises, and deliver value for Oracle customers.”
“The addition of M2 expands, and substantially completes, our North American geographic footprint with virtually no overlap on our existing client base,” said Edgewater Executive Vice President Robin Ranzal. “M2 brings large scale cloud-based EPM references, as well as new verticals in aerospace, retail, entertainment and financial services, all of which will be strategic additions to our Oracle EPM portfolio of services.”
Total consideration paid at closing was approximately $16.1 million, in cash. The purchase price is subject to a net working capital adjustment and additional contingent consideration of up to approximately $6.6 million, based on operating results over a one-year period immediately following closing. Contingent consideration earned, if any, would be payable in cash. M2’s operating results will be combined with those of Edgewater’s beginning on December 21, 2015.
Ridgecrest Advisors served as an advisor to Edgewater on this transaction.