KippsDeSanto & Co. is pleased to announce the sale of its client, Enterprise Resource Performance Inc. (“ERPi” or the “Company”), to ECS Federal, LLC, a segment of ASGN Incorporated (NYSE: ASGN).
Headquartered in Fairfax, VA, ERPi is a leading provider of healthcare transformation, management consulting, and data analytics solutions across well-funded civilian and defense customers, including the Department of Veterans Affairs (“VA”) and the National Institutes of Health (“NIH”), among others. Of note, ERPI is deeply embedded within the Veterans Health Administration, helping to solve some of the nation’s most pressing healthcare problems, while designing, developing, and implementing innovative and data-driven solutions that have increased medical appointments, reduced wait times, assisted with suicide prevention, and supported the opening of medical centers. Notably, the Company was instrumental during the COVID-19 pandemic, having implemented telehealth solutions and developed processes to address shortages in critical medical supplies. Additionally, through its domain-agnostic and rapidly growing data analytics practice, the Company uses in-house artificial intelligence / machine learning (“AI / ML”)-based tools, algorithms, and automation techniques to, reconcile client data, recover and protect fraudulently redirected healthcare benefits, optimize claims processing, and allow clients to “search by image” through deep learning-based image recognition. ERPi’s advanced tradecraft has positioned the Company as a trusted partner to government executives at the forefront of national healthcare missions on large, transformative programs.
The transaction complements ECS’ healthcare consulting and analytics competencies and affords the buyer depth and breadth across well-funded customers, including the VA, germane to national health challenges.
We believe this investment demonstrates several key trends in the current government technology solutions M&A environment:
- Healthcare –and specifically healthcare consulting and analytics – has re-emerged as a highly coveted growth and M&A area given demographic and budgetary trends
- Strong focus on companies that have intimate, long-standing client relationships and strong competitive differentiators within the rapidly evolving federal healthcare ecosystem (e.g., electronic health record modernization, integrated health plans, and virtual health)
- Significant demand for advanced, data-centric consulting solutions driven by AI / ML
- Strategic buyers continue to seek acquisitions that unlock value and accelerate growth, particularly for assets that afford substantial revenue visibility, intellectual capital, and seasoned management teams
About KippsDeSanto & Co. KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity, and industry experience. We help market leaders realize their full strategic value. Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience. For more information, visit www.kippsdesanto.com.
Investment Banking products and services are offered through KippsDeSanto & Co., a non-bank subsidiary of Capital One, N.A., a wholly-owned subsidiary of Capital One Financial Corporation, and a member of FINRA and SIPC. Products and services are Not FDIC insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured by Any Federal Government Agency.
ASGN Incorporated Announces Acquisition of Enterprise Resource Performance, Inc.
Acquisition enhances ECS’ healthcare IT solutions and provides access to new customers and contract vehicles
RICHMOND, Va.–(BUSINESS WIRE)– ASGN Incorporated (NYSE: ASGN), one of the foremost providers of IT and professional services in the technology, digital, and creative fields across the commercial and government sectors, announced today the acquisition of Enterprise Resource Performance, Inc. (ERPi), a premier healthcare consulting and data analytics firm that delivers federal healthcare transformation services. ERPi’s team of 250 consultants will become part of the Enterprise Solutions business unit within ECS, ASGN’s Federal Government Segment.
Founded in 2001 in Fairfax, Virginia, ERPi provides IT solutions, data analytics, artificial intelligence/machine learning (AI/ML), and healthcare domain expertise to government entities, including the Department of Veterans Affairs (VA), the National Institutes of Health (NIH), the Navy Bureau of Medicine and Surgery (BUMED), Indian Health Services (IHS), the Securities and Exchange Commission (SEC), and the US Army. ERPi supports key health initiatives including electronic health records modernization, post-COVID-19 care models, and improved access to provider and cost information, among other programs.
“Following one of the most difficult years for the global healthcare market, ASGN is proud to add enhanced solution capabilities in the healthcare industry with the addition of ERPi,” said Ted Hanson, ASGN President and Chief Executive Officer. “ERPi offers superior IT services depth and healthcare industry knowledge, and we look forward to leveraging their proven healthcare and business transformation capabilities across our combined client base.”
“The acquisition of ERPi deepens ECS’ capabilities across a number of exciting solution areas and provides key contract vehicles that will bolster our current healthcare industry offerings. We are thrilled to bring their team’s experience to new and existing customers across industry and government,” said George Wilson, President of ECS.
“Like ECS, ERPi has a long history of taking on their clients’ largest and most complex challenges, including federal departments like the VA. ECS is pleased to support human-centric missions – helping to accelerate meaningful and enduring transformation to improve the lives and medical care of our nation’s veterans and military families,” added John Heneghan, Chief Operating Officer of ECS.
“Joining ECS is an incredible next step for ERPi. Our customers will not only benefit from ECS’ deep enterprise resources and program-level experience, but also from their digital transformation, cybersecurity, data and AI solutions. We are thrilled to have this opportunity to join the ECS and the broader ASGN platform,” said Bill Hummel, President of ERPi.
In addition to the cash consideration, ASGN is granting restricted stock unit awards to 14 ERPi employees covering approximately 29,000 shares. Subject to continued service to ASGN, these grants will vest: (a) one-half on the second anniversary of the grant date, and (b) 25 percent on each of the third and fourth anniversaries of the grant date. The restricted stock unit awards were granted as employment inducement awards pursuant to the New York Stock Exchange rules.
Legal & Financial Advisors
ASGN retained Sullivan & Cromwell LLP and ERPi retained Venable LLP and PilieroMazza PLLC as legal counsel and KippsDeSanto & Co. as financial advisor.
About ASGN Incorporated
ASGN Incorporated (NYSE: ASGN) is one of the foremost providers of IT services and professional solutions, including technology, creative, and digital, across the commercial and government sectors. ASGN helps leading corporate enterprises and government organizations develop, implement and operate critical IT and business solutions through its integrated offering of professional staffing and IT solutions. ASGN’s mission is to be the most trusted partner for companies seeking highly skilled human capital and integrated solutions to fulfill their strategic and operational needs. For more information, visit us at asgn.com.
ECS, ASGN’s Federal Government Segment, delivers advanced solutions in cloud, cybersecurity, data and artificial intelligence (AI), application and IT modernization, science, and engineering. The company solves critical, complex challenges for customers across the U.S. public sector, defense, intelligence, and commercial industries. ECS maintains partnerships with leading cloud, cybersecurity, and AI/ML providers and holds specialized certifications in their technologies. Headquartered in Fairfax, Virginia, ECS has more than 3,000 employees throughout the United States. For more information, visit ECStech.com.
Certain statements made in this news release are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and involve a high degree of risk and uncertainty. Forward-looking statements include statements regarding our anticipated financial and operating performance.
All statements in this release, other than those setting forth strictly historical information, are forward-looking statements. Forward-looking statements are not guarantees of future performance, and actual results might differ materially. In particular, we make no assurances that the estimates of revenues and Adjusted EBITDA will be achieved. Factors that could cause or contribute to such differences include actual demand for ASGN services, the Company’s ability to attract, train and retain qualified staffing consultants, the Company’s abilities to remain competitive in obtaining and retaining clients, the availability of qualified contract professionals, management of growth, continued performance and improvement of enterprise-wide information systems, the Company’s ability to manage litigation matters, the successful integration of recent or future acquisitions and demand for each of our services and other risks detailed from time to time in reports filed with the SEC, including ASGN’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on March 1, 2021. We specifically disclaim any intention or duty to update any forward-looking statements contained in this news release.