BG Staffing has acquired a Boston-based specialized information technology consulting firm for $21.6 million.
BG Staffing Inc. (NYSE: BGSF) purchased EdgeRock Technology Partners in an all-cash transaction as the Plano-based company looks to bolster its IT solutions offerings, according to a news release.
EdgeRock has a presence in 40 states with three regional offices and reported about $41 million in revenue during fiscal year 2019.
“EdgeRock brings a high-quality, diversified client base and adds its unique outsourced solution center," said CEO Beth Garvey in a prepared statement. “It also brings multi-year customer contracts with a recurring revenue model.”
BG Staffing’s most recent filings show the company brought in more than $79 million in revenue during the third quarter of 2019. The company reached $286.9 million in full-year revenue in 2018. Last year, the company reported to the Dallas Business Journal that it had 79 locations in 31 states.
This announcement comes on the heels of the staffing firms’ acquisition of L.J. Kushner & Associates late last year. BG Staffing purchased the 20-year-old firm, based in Freehold, N.J., in a deal valued at $9.5 million.
According to the release, this is the 11th acquisition the company has made in as many years.
In an interview last summer with the Business Journal, Garvey said acquisitions, in addition to two brand startups and a strong organic growth model, contributed to revenue increases for the company during the past five years.
BMO Harris Bank provided BG Staffing financing through existing credit facility and Bowstring Advisors acted as financial advisor to EdgeRock.
