Estimated 2013 revenues for CyberCoders are $55 million with an EBITDA margin of approximately 25 percent. The inclusion of CyberCoders will increase the Company’s mix of permanent placement revenues to over 4.5 percent of consolidated revenues (currently at 1.7 percent) and result in an expansion of 175 to 200 basis points in consolidated gross margin and 50 basis points in Adjusted EBITDA margin (a non-GAAP term defined below). The Company believes CyberCoders’ growth rate in 2014 will be in the high teens.
CyberCoders is based in Irvine, California, with additional offices in Los Angeles, Boston and New York. Its dedicated team of over 200 recruiters utilizes innovative and proprietary technology to place middle and senior level professionals with IT, healthcare and life sciences skills in permanent positions.
CyberCoders will become a division of On Assignment and continue to operate under the CyberCoders brand name. Heidi Golledge, CyberCoders’ Founder and Chief Executive Officer, and Matt Miller, Chief Technology Officer, will continue to oversee the day-to-day operations of the business. Golledge will report to On Assignment’s Chief Operating Officer Michael McGowan.
“CyberCoders has an impressive track record of consistent revenue growth and high margins,” said Dameris. “The success of the company is a testament to its talented management team, its unique culture which motivates its dedicated and hardworking recruiters, and technology-based business model. All of which we will be able to leverage as we seek to expand our activities in the attractive permanent placement marketplace. We believe that On Assignment’s more than 600-person sales team will accelerate CyberCoders’ growth by sharing with them the permanent placement leads that come through our Apex, Oxford, Healthcare and Life Sciences divisions. These are leads that historically we have not pursued or aggressively worked on, and are not easily filled by our existing staff.“Because we are putting together two complementary businesses, there is very little integration risk and therefore we expect CyberCoders’ transition to On Assignment to be a smooth one,” Dameris continued. “The acquisition will also allow us to better serve our customers since we will now be able to not only meet their staff augmentation needs, but also provide them with permanent placement services on a contingent basis. As a result, we believe that CyberCoders complements our current service offerings across all the On Assignment divisions quite well.”
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