Wavestone and WGroup Announce Their Merger to Start a New and Ambitious Growth Chapter in the US

NEW YORK, July 19, 2019 /PRNewswire/ --

WGroup: transforming old legacy-centric IT into a modern digital business-oriented one

Founded in 2004 and headquartered in Philadelphia, Pennsylvania, WGroup is an IT executive management consultancy focused on delivering IT strategy, cost optimization, and operational improvement advisory services to IT leaders in large enterprises across North America.

The Company's experience spans multiple verticals such as Healthcare and Insurance, Media & Entertainment, Global Manufacturing, Retail and Financial Services.

WGroup team is comprised of approximately 100 team members, including 50+ permanent employees.

For its last calendar year (ended December 31, 2018), WGroup recorded consolidated revenue of $26.1m (approximately €23.3m), up 16%, and an adjusted EBITDA margin of circa 15%.

A new and ambitious growth chapter in the US, in line with Wavestone 2021 strategic plan

This acquisition accelerates the international development of Wavestone, in particular in the US, in line with Wavestone's 2021 Strategic Plan. After the merger, Wavestone's business in the US will represent an annual revenue of circa $35m.

"The US is a bellwether market in the consulting industry" commented Pascal Imbert, Wavestone's CEO. "We were impressed by WGroup's leadership team and its ability to consistently expand its client base. We are eager to start working with WGroup's team and thrive together seizing new opportunities in the US".

"After laying a 15-year foundation of persistent organic growth delivering world-class executive IT advisory to some of the best clients in the world, we've reached an inflection point" said Jeffrey Vail, CEO of WGroup. "We are an ambitious team with our sights set on achieving market-leadership in the US market. To do so, we need to deliver more service lines, greater breadth of expertise, around-the-globe capability, and overall, enhance our value to clients. Merging with Wavestone gives us this opportunity – today".

Terms of the operation

The transaction takes the form of a 100% acquisition of WGroup by Wavestone.

WGroup's leadership team is fully committed to the merger. Jeff Vail, its CEO, joins Wavestone's executive committee and is to take the lead of Wavestone's business in the US after the post-merger integration program.

The acquisition has been paid in cash and funded through an existing credit line negotiated with Wavestone's banks.

WGroup will be consolidated in Wavestone's accounts as of August 1, 2019.

About WGroup

WGroup is an IT consulting firm with a peer-to-peer approach to IT strategy, cost optimization, and operational improvements. The team is comprised of consultants with over two decades' experience as former C-suite executives and IT leaders. The firm boasts a clientele that includes more than 200 Fortune 1000 companies across a wide range of industries. WGroup is known for an outcome-driven, customer-specific, agnostic approach that optimizes IT operations and minimizes costs.

For more information, visit www.thinkwgroup.com.

About Wavestone

In a world where knowing how to drive transformation is the key to success, Wavestone's mission is to inform and guide large companies and organizations in their most critical transformations, with the ambition of a positive outcome for all stakeholders. That's what we call "The Positive Way."

Wavestone draws on some 3,000 employees across 8 countries. It is a leading independent player in the European consulting market.

Wavestone is listed on Euronext Paris and recognized as a Great Place to Work^®.

For more information, visit www.wavestone.com.

SOURCE Wavestone