WAKEFIELD, Mass., May 18, 2010 (GLOBE NEWSWIRE) -- Edgewater Technology, Inc. (Nasdaq:EDGW) ( www.edgewater.com) ("Edgewater" or the "Company"), a consulting firm that brings a synergistic blend of specialty services to its clients in the areas of business advisory, analytics, data management and technology, today announced it has completed an asset acquisition with Chicago-based Meridian Consulting International ("Meridian"). Meridian is a specialty solution provider of Oracle's Hyperion Strategic Finance product ("HSF") which encompasses strategic planning and forecasting, scenario modeling and mergers and acquisitions analysis. The acquisition is expected to:
- Expand Edgewater's business advisory service capabilities to the Office of the CFO;
- Create a full suite of Oracle enterprise performance management ("EPM") offerings;
- Solidify Edgewater's geographical footprint in the Chicago/Mid-West area;
- Be easily packaged with the Company's other service offerings; and
- Be accretive to earnings.
The acquisition will be accounted for as an asset purchase with Meridian stockholders receiving total upfront consideration of $1.75 million, subject to net working capital adjustments to be calculated post-closing. Additionally, the former Meridian stockholders will have the potential to earn additional consideration of up to $2.7 million based upon the achievement of certain performance-based objectives over a 36-month period following the closing date.DecisionPoint International, a boutique technology investment bank, served as an advisor to Edgewater on this transaction. About Edgewater Edgewater is a consulting firm that brings a synergistic blend of specialty services to its clients in the areas of business advisory, analytics, data management and technology. We develop business strategies and technology solutions that address our clients' specific needs while providing them with an increased competitive advantage. Headquartered in Wakefield, MA, we typically go to market both vertically by industry and horizontally by product and technology specialty and provide our clients with a wide range of business and technology offerings. To learn more, visit www.edgewater.com or call 800-410-4014. The Edgewater Technology logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3783 About Edgewater-Ranzal Edgewater-Ranzal ("Ranzal"), an Edgewater Company, is a leading provider of enterprise performance management (EPM) solutions on the Oracle/Hyperion platform. For over fifteen years, Ranzal has provided innovative consulting solutions to solve complex business problems while creating efficiencies that directly impact clients' bottom lines. Ranzal is one of the largest Oracle/Hyperion practices in the United States and an Oracle/Hyperion Platinum Partner. Safe Harbor Statement This Press Release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning our 2010 outlook, future revenue and growth, cost savings and cost control efforts, customer spending outlook, general economic trends, IT service demand, future revenue and revenue mix, utilization, training and new service offerings, significant customers, backlog, competitive and strategic initiatives, growth plans, potential stock repurchases, future results, tax consequences and liquidity needs . In some cases, you can identify forward-looking statements by terminology such as "may," "should," "believe," "anticipate," "forecast," "project," "target," "potential," "estimate," "encourage," "opportunity," "goal," "objective," "could," "expect," "intend," "plan," "focus," "build," "strategy," "maximize," "commitment," "create," "implement," "seek," "establish," "pursue," "continue," "can," or terms of similar meaning. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on our current plans or assessments which are believed to be reasonable as of the date of this Press Release. Factors that may cause actual results, goals, targets or objectives to differ materially from those contemplated, projected, forecasted, estimated, anticipated, planned or budgeted in such forward-looking statements include, among others, the following possibilities: (1) failure to obtain new customers or retain significant existing customers; (2) the loss of one or more key executives and/or employees; (3) changes in industry trends, such as a decline in the demand for Business Intelligence ("BI") and Enterprise Performance Management ("EPM") solutions, custom development and system integration services and/or declines in industry-wide information technology ("IT") spending, whether on a temporary or permanent basis and/or delays by customers in initiating new projects or existing project milestones; (4) inability to execute upon growth objectives, including new services and growth in entities acquired by our Company; (5) adverse developments and volatility involving economic, geopolitical or technology market conditions; (6) unanticipated events or the occurrence of fluctuations or variability in the matters identified under "Critical Accounting Policies;" (7) delays in, or the failure of, our sales pipeline being converted to billable work and recorded as revenue; (8) inability to recruit and retain professionals with the high level of information technology skills and experience needed to provide our services; (9) failure to expand outsourcing services to generate additional revenue; (10) any changes in ownership of the Company or otherwise that would result in a limitation of the net operating loss carry forward under applicable tax laws; and/or (11) the failure of the marketplace to embrace specialty consulting services. In evaluating these statements, you should specifically consider various factors described above as well as the risks outlined under Item I "Business – Factors Affecting Finances, Business Prospects and Stock Volatility" in our 2009 Annual Report on Form 10-K filed with the SEC on March 15, 2010. These factors may cause our actual results to differ materially from those contemplated, projected, anticipated, planned or budgeted in any such forward-looking statements.
Although we believe that the expectations in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, growth, earnings per share or achievements. However, neither we nor any other person assumes responsibility for the accuracy and completeness of such statements. We are under no duty to update any of the forward-looking statements after the date of this Press Release to conform such statements to actual results.
CONTACT: Edgewater Technology, Inc. Timothy R. Oakes, Chief Financial Officer Russell Smith, Senior Vice President / Investor Relations (781) 246-3343