Cambridge Technology Partners Inc, the fast expanding systems integration firm from Cambridge, Massachusetts, has acquired privately-held fellow systems integrator Excell Data Corp for approximately $60m in stock, based on Friday’s closing prices. Excell specializes in the implementation of Microsoft Corp applications and Cambridge Technology said it had pursued the deal partially because of Excell’s close relationship with Redmond. Cambridge said it now hoped to gain the inside track on Microsoft product introductions and future strategies. Excell is headquartered in Bellevue, Washington and the firm currently employs around 500 personnel. Last year it generated profits of $1.6m from revenues of $32m. The all-stock acquisition looked to have offered Excell’s owners a healthy earnings multiple on their shares. Unhappily, the demolition of technology stocks during Monday’s trading on the Nasdaq wiped over 8% from the agreed acquisition price in a single afternoon. Cambridge said it will record for the deal using pooling of interests accounting, taking a one-time charge of $8m, the majority of which is not for the usual in process R&D but instead, $6.7m will be awarded to various employees as required by Excell’s employee benefit plan.
