Cegeka acquires CTG for $170M cash deal
HASSELT, BELGIUM & NEW YORK, UNITED STATES — European IT solutions company Cegeka has agreed to acquire Computer Task Group (CTG) for $10.50 per share in an all-cash transaction valued at approximately US$170 million.
CTG provides digital transformation solutions to high-growth vertical markets, focused primarily on healthcare, finance, energy, manufacturing, and government. The company’s impressive growth saw its gross margin expanding from 19.1% in 2018 to 28.1% as of June 30, 2023.
After the acquisition, Cegeka’s annual turnover in 2024 is expected to reach €1.4 billion (US$1.5 billion). It will also see the company’s workforce grow to over 9,000 across 18 countries.
“This merger is a logical next step in the continuous growth journey of Cegeka. In CTG, we find a partner that complements our customer and service portfolio and strengthens our capabilities and knowledge,” remarked Stijn Bijnens, CEO of Cegeka.
André Knaepen, Chairman of the Board of Directors of Cegeka, echoed the sentiment, highlighting the enhanced value the combined entity will offer customers across North America and Europe.
From CTG’s vantage, the merger is equally promising. Filip Gydé, CTG President and CEO, voiced his enthusiasm about the deal, stating, “At CTG, our mission is to drive better, faster results for our customers with high-value digital transformation solutions. In Cegeka, we are pleased to have found a partner that will enable us to accelerate this important work.”
The transaction is expected to close later in 2023. Upon completion, CTG will become a privately held company, with its common stock no longer listed on any public market.
