InfoTrellis to be Acquired by Mastech Digital
Combined entity creates a unique Digital Transformation Services Company with deep Consulting and Project Delivery Capabilities in Data Management & Analytics
TORONTO & AUSTIN, Texas - July 7, 2017 - PRLog -- InfoTrellis, Inc., a Toronto-based Data Management & Analytics company, today announced that it has entered into a definitive agreement under which Mastech Digital, Inc. (NYSE:MHH), a leading Digital Transformation Services provider, will acquire InfoTrellis' services division. The demand for Digital Transformation consulting services is growing rapidly, as more Fortune 1000 companies are funding digital transformation initiatives to reinvent how they do business. Data & analytics is at the heart of every digital transformation strategy and our combination will bring together two differentiated companies - both with global brand recognition and complementary service offerings – and a unique value proposition to offer expertise and scalability in digital transformation consulting.
The acquired business, to be branded as Mastech InfoTrellis, will offer project-based consulting services to customers in the areas of Master Data Management, Data Integration, Big Data and Customer Intelligence Management (Customer 360), and at the same time strengthen Mastech Digital's digital transformation services capability. InfoTrellis' industry-wide recognition for its thought leadership and depth in data management & analytics, as well as proven global delivery expertise, will enhance the growth opportunities of the combined entity.
"Mastech Digital has global brand recognition and is highly respected in the IT industry, and InfoTrellis is very excited to join them," said Mahmood Abbas, CEO and Co-founder of InfoTrellis. "I am confident that our strengths in delivering consulting services in data management & analytics, combined with Mastech Digital's scale and proven experience in providing IT staffing and digital transformation services, will offer a unique value proposition in the market of scalable consulting teams with deep expertise."
The transaction is valued at USD $55 million, with USD $35.7 million paid in cash at closing and USD $19.3 million deferred over an earn-out period.
InfoTrellis and Mastech Digital expect to realize several synergies from the combined enterprise:
· Ability to participate in larger digital transformation deals
· Opportunity to cross-sell a broader range of service offerings to existing and future customers of both businesses
· Larger scale, improved operational efficiencies and expanded global delivery model
· Better economies of scale from shared support services integration
"We began transforming Mastech into a digital transformation services company a year ago when we launched our new name 'Mastech Digital' and recast our service offerings," said Vivek Gupta, President and CEO of Mastech Digital. "The acquisition of InfoTrellis will be a significant milestone in that journey. I am delighted with the capabilities InfoTrellis brings to the Mastech Digital family and am excited about creating a combined organization that will deliver world-class services around Data Management & Analytics in its expanded portfolio of digital transformation services."
The combined entity will have augmented scale, expanded global delivery capability, and deeper leadership strength. "The integration will advance our vision of addressing the wider challenges faced by our clients in adopting Big Data and Advanced Analytics," said Sachin Wadhwa, COO and Co-founder of InfoTrellis. "We believe the combination of Mastech Digital and InfoTrellis will have a meaningful impact in the way Data Management and Analytics consulting is delivered by us."
Mahmood Abbas and Sachin Wadhwa will continue to play the leadership role in the combined entity.
The product division of InfoTrellis has been spun off as a separate company called AllSight, Inc., and Zahid Naeem, one of the Co-founders of InfoTrellis, has moved to the AllSight company. "Our vision for InfoTrellis consulting has always been to provide premium data management and analytics consulting services for our clients," said Zahid Naeem. "This partnership with Mastech Digital is a major milestone in continuing with that vision. We are also looking forward to a strong partnership between the combined entity and AllSight Inc., as Customer Intelligence Management, or a Customer 360, is a critical software system to deliver upon a digital transformation strategy."
InfoTrellis has over 200 associates globally, a customer-base of more than 40 blue chip customers in North America, offices in Toronto (Canada) and Austin (Texas, U.S.), as well as a global delivery center in Chennai (India). Mastech Digital has nearly 1,300 associates globally, a customer-base of over 300 companies, seven offices across the US, as well as a delivery center in New Delhi (India).
The acquisition is subject to customary closing conditions and is expected to close in July 2017.
About Mastech Digital
Mastech Digital (NYSE MKT: MHH) is a national provider of IT services focused on solving its customers' digital transformation challenges. The Company's IT staffing services span across digital and mainstream technologies while its digital transformation services include Salesforce.com, SAP HANA, and digital learning services. A minority-owned enterprise, Mastech Digital is headquartered in Pittsburgh, PA with offices across the U.S. and India. For more information, visit www.mastechdigital.com.
InfoTrellis is a Canada-based Information Management Consulting and Technology Services Company that provides project and consulting services in Master Data Management, Data Integration, Customer Intelligence Management, and Big Data. For more information, visit http://www.infotrellis.com.