The Chesapeake Group advised Mastech Digital in its acquisition of InfoTrellis
Transaction highlights our deep expertise in digital services
We are very pleased to announce that The Chesapeake Group has advised Mastech Digital in its acquisition of InfoTrellis. 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, SAP HANA, and digital learning services. 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). Mastech Digital reported revenues of $132 million for its latest fiscal year ended December 31, 2016. InfoTrellis is a specialist in data management and analytics services. The acquisition will strengthen Mastech Digital’s capabilities to offer project-based consulting services to customers in the areas of Master Data Management, Data Integration, and Big Data and Analytics, thereby strengthening Mastech Digital’s digital transformation services. InfoTrellis reported revenues of $22 million for its latest fiscal year ended June 30, 2016. The company has over 200 associates globally, a customer-base of more than 40 blue chip customers in North America, with offices in Toronto and Austin, as well as a global delivery centre in Chennai (India).
Founded by Ashok Trivedi and Sunil Wadhwani in 1986 as Mastech Holdings, the company was the foundation for iGate Corporation. In 2008, Mastech Holdings was spun off from iGate and continued as an independent company. Post the sale of iGate to Capgemini, the founders of Mastech began an initiative to build Mastech as a digital transformation services provider, including hiring Vivek Gupta to lead the firm.
Vivek Gupta, the President and CEO of Mastech Digital, said, “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. 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.”
Chesapeake was retained by Mastech Digital to accelerate their transformation via acquisitions, culminating in the acquisition of InfoTrellis.
The transaction is valued at $55 million, with $35.7 million paid in cash at closing, and $19.3 million deferred over the next two years. The acquired business will be branded as Mastech InfoTrellis.
This transaction highlights Chesapeake’s deep expertise of the digital services landscape. As IT services firms look to build out their digital transformation services, having an advisor that can guide a buyer through the evolving landscape is crucial.
Vivek Gupta noted: “Chesapeake’s knowledge of the digital services landscape was instrumental in helping Mastech Digital sharpen its acquisition strategy and in finding acquisition targets that would be the ideal foundation for our transformation.”
Throughout our 30-year history, Chesapeake has demonstrated an ability to work with large enterprises to identify and execute strategically important acquisitions, including with companies that are not actively on the market.