Under the terms of the deal, Greenwood, Collorado-based Ciber will pay $4.05 per share for each outstanding share of Alphanet stock, valuing the entire deal at $28.75m, including employee options to purchase Ciber stock. The deal values AlphaNet at a premium of 2.16 times anticipated revenue of $12m in full year 2003, and Ciber expects the company to also be accretive to earnings at 1 cent per share.
Cedar Knolls, New Jersey-based AlphaNet specializes in providing networking and IT consulting services for clients in the East Coast of the US, and as a result Ciber plans to merge its own Edison, New Jersey office with that of AlphaNet following a period of discussions between the two firms over recent months. During its most recent quarter ended April 30, AlphaNet made revenue of $5.22m, down 25% on 2002, and reported a net loss of $762,000, compared to a net profit of $1.08m in 2002. For the year ended December 31, revenue was down 50% to $25.9m, however the company’s saving grace is that it is sitting on a strong cash pile, which stood at $22.5m at the end of the first quarter.
The deal is the second acquisition by Ciber in 2003, after its takeover of UK-based IT consultancy ECSoft Group Plc in January for 34m pounds ($52m). That deal added further presence for Ciber in the European markets of the UK, Germany, Hungary and the Netherlands.
Source: Computerwire
