The Chesapeake Group advises Mastech Digital on its acquisition of AmberLeaf Partners
Mastech expands its data and analytics services to include customer experience consulting
We are very pleased to announce that The Chesapeake Group has advised Mastech Digital (NYSE: MHH), a leading provider of digital transformation IT services, on its acquisition of AmberLeaf Partners, a US based customer experience consultancy.
Headquartered in Chicago, IL, AmberLeaf offers managed services for cloud-based enterprise applications across sales, marketing, and customer service through the AmberLeaf Experience as a Service (AXaaS) model. The acquisition merges Mastech's ability to deliver enterprise intelligence through data and analytics to marquee enterprise customers with AmberLeaf's unique customer experience consulting capabilities.
The transaction is valued at $14.0 million, with $9.5 million paid in cash at closing, subject to customary adjustments, and up to $4.5 million in deferred payments over the next two years. The deferred payments are contingent upon the acquired business achieving specific financial targets during the two years following the closing of the acquisition.
The combined businesses will provide customers with an expanded suite of service offerings, delivery capabilities, and human capital across North America, EMEA, India and ASEAN countries. Mastech InfoTrellis will enhance its capabilities in customer experience strategy, global service delivery, and IP-led platforms. AmberLeaf will have access to Mastech InfoTrellis' global delivery engine and robust sales and marketing capabilities and its customers will have access to Mastech InfoTrellis' "Enterprise Intelligence Hub". The deal provides a broader scope for AXaaS across Mastech InfoTrellis's global client base.
Commenting on the acquisition, Vivek Gupta, President and CEO of Mastech Digital, stated, "In 2017 we began our transformational journey to become a world-class provider of Data Management and Analytics services. The acquisition of AmberLeaf reinforces our commitment to this strategy by enhancing our ability to significantly scale our Data and Analytics business segment."
The transaction highlights The Chesapeake Group’s strong buy side credentials and our commitment to long term relationships with our clients. In 2017, Chesapeake advised Mastech on its acquisition of Infotrellis. On working with Chesapeake Vivek Gupta noted, “We view The Chesapeake Group as our trusted advisor and extension of our team in executing these strategically important transactions.” We are extremely proud to be working with Mastech Digital on its digital transformation journey.
The transaction also emphasizes how a strong and focused inorganic strategy can lead to significant value creation for technology services companies even in such uncertain business environments.