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On Assignment Closes Acquisition Of Apex Systems

Stocks in this article: ASGN

Prior to the merger, Apex Systems was the 6 th largest and one of the fastest growing IT staffing firms in the United States. In 2011, Apex Systems had approximately $700 million in revenue and adjusted EBITDA of approximately $65 million. Apex Systems has achieved a compound annual revenue growth rate (CAGR) of 30.4% since 2000 and expects to achieve double-digit top-line growth in 2012.

Apex Systems will continue to operate substantially as it has in the past with the same leadership team. Rand Blazer, will continue to run Apex Systems assuming the role of President. Ted Hanson will continue as Chief Financial Officer of Apex Systems. Apex Systems’ senior management team will remain in place and continue with its day-to-day operations.

“We look forward to working closely with the talented team at Apex Systems to realize the many growth opportunities ahead,” Dameris said.

Financial Estimates for the Second Quarter of 2012 that Include the Impact of the Apex Acquisition

With the close of this transaction, On Assignment’s revised financial estimates for the second quarter of 2012 are as follows:

  • Revenues of $278 million to $280 million
  • Gross margin of approximately 31.2%
  • SG&A of approximately $65 million, which excludes any acquisition-related expenses, but includes depreciation of approximately $1.6 million, amortization of approximately $2.6 million and approximately $2.5 million of equity based compensation
  • Adjusted EBITDA of $28.1 to $29.0
  • Net Income of $10.4 to $11.0
  • Earnings per diluted share of $0.23 to $0.24
  • Fully diluted shares outstanding of 45,400,000

The estimates above include contribution from Apex Systems as of May 16, 2012 forward and On Assignment’s previous guidance given on April 26, 2012. The estimates take into account the Company’s normal seasonal operating patterns.

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