Mastech Digital, a provider of digital transformation IT services, acquired AmberLeaf Partners, a Chicago-based customer experience consulting company.
AmberLeaf offers managed services for cloud-based enterprise applications across sales, marketing and customer service through the AmberLeaf Experience as a Service (AXaaS). The acquisition will provide a broader scope for AXaaS across Mastech InfoTrellis’s global client base.
“In 2017 we began our transformational journey to become a world-class provider of data management and analytics services,” Vivek Gupta, president and CEO of Mastech Digital, said. “The acquisition of AmberLeaf reinforces our commitment to this strategy by enhancing our ability to significantly scale our data and analytics business segment.”
The transaction is valued at $14 million, with $9.5 million paid in cash at closing, subject to customary adjustments, and up to $4.5 million in deferred payments over the next two years. The deferred payments are contingent upon the acquired business achieving specific financial targets during the two years following the closing of the acquisition.
Concurrent with the acquisition, Mastech Digital entered into a revised credit facility with PNC Bank, which increased the term loan facility by approximately $10 million to $17.5 million and increased the revolving loan facility to $30 million, an increase of $7.5 million from the previous credit line of $22.5 million.
“While we could have comfortably funded the acquisition with funds available under our previous facility, this revised credit agreement will give us sufficient financial flexibility to continue to invest in our businesses in both an organic and inorganic manner,” Jack Cronin, CFO and corporate secretary of Mastech Digital, said.
The Chesapeake Group served as investment banker and Blank Rome served as legal counsel for Mastech Digital on the transaction.
