- Expands ICF’s Growing Digital Business Adding Strategic Advisory, Creative Services and Proprietary Technology and Analytics
- Builds on ICF’s Existing Customer Engagement Offerings to Commercial and Government Clients
- Transaction Expected to be Accretive to 2015 Earnings Beginning in the First Quarter; Neutral in 2014
- ICF Reaffirms its Revenue and Diluted Earnings Per Share Guidance for 2014, Exclusive of the Contribution of the Olson Transaction
Olson had pro forma revenues1 of
This acquisition strengthens and expands ICF’s digital marketing capabilities, enabling clients to transform the way they engage with customers and stakeholders. Combined with ICF’s existing digital technology implementation capabilities, Olson will help drive multi-channel marketing initiatives across web, mobile, email, social, print, broadcast and off-premise platforms. Olson’s diversified roster of marquee clients spans a broad range of industry categories, including health, energy and transportation, complementing ICF’s work in those areas, in addition to its significant consumer/retail presence.
The professional services landscape has changed dramatically in the past few years, reflecting rapid growth in the use of digital services by consumers, businesses and governments. In recognition of this trend ICF acquired Ironworks (2011), CITYTECH (2014) and Mostra (2014) to buttress its legacy capabilities. These capabilities combined with Olson’s have positioned ICF as a full-service digital marketing solutions provider that will give commercial and government clients the opportunity to reach their most important audiences easily, directly and cost effectively.
“Our clients are increasingly using mobile platforms, social media and the web for interacting with their customers and stakeholders. Utility companies are using these channels to increase energy efficiency, healthcare companies to influence consumer choices, transportation companies for transactions and governments for stakeholder engagement. A deep and sophisticated understanding of consumer behavior combined with the use of digital technologies will be increasingly key to helping ICF’s clients implement solutions in the future,” said
“We are thrilled to be joining ICF, which we see as an excellent platform to drive our future growth, domestically, internationally and across client categories,” said
As a result of the acquisition, 545 professionals will join ICF. The acquisition also includes digital assets and intellectual property including Olson’s Tally®, a CRM-driven loyalty platform that enables clients to drive rewards and marketing programs;
Specifically, the combination of Olson with ICF creates value in several ways:
Leverages Olson’s Recognition and Expertise in Integrated Marketing Solutions to Extend ICF’s Current Commercial Digital Business. ICF’s 2011 acquisition of Ironworks firmly established the company in the fast-growing digital services market. The early 2014 acquisitions of CITYTECH and Mostra, respectively, built out ICF’s content management capabilities and its stakeholder engagement expertise. With Olson, ICF will have an end-to-end service offering comprised of strategic advisory, creative, proprietary technology and analytics, and implementation services to deploy on behalf of existing and new commercial clients.
Olson’s Reputation for Creativity and Innovation Provides the Requisite Qualifications to Further Expand ICF’s Digital and Strategic Communications Work for Government Clients. This transaction improves ICF’s position in the branding space, enabling the company to broaden its offerings to include innovative and commercially-inspired digital services to its federal, state, local and international government clients, which are increasingly seeking digital solutions to effect stakeholder engagement. Prior to this acquisition, ICF’s strategic communications offerings resulted in its ranking by PR Week’s Agency Business Report 2014 as the sixth largest independent public relations agency in the U. S., primarily through its government work. Olson strengthens ICF’s ability to capture a greater share of this growing market. In addition, Mostra, acquired by ICF earlier this year, is the largest provider of marketing and communications services to the
Acquisition Aligned with Strategy to Increase Mix of Higher Margin Commercial Business. The Olson transaction shifts ICF’s revenue base considerably. On a pro forma basis, assuming the transaction had closed on
ICF’s Deep Digital Technology Integration Capabilities and Business Development Resources to Drive Additional Revenue Synergies. ICF’s existing digital business revenues from commercial clients continue to increase at solid double-digit rates, reflecting strong demand and the company’s greater recognition for developing and implementing successful customer engagement programs. ICF’s growing client roster and business development pipeline should set the stage for significant revenue synergies with Olson. Similar to the strategy employed after acquiring
Additionally, ICF announced today that, exclusive of the impact of the Olson acquisition, it reaffirms its revenue, diluted earnings per share, and cash flow guidance for 2014. This guidance calls for full year revenues of
Conference Call Information
ICF’s management will host a conference call and slide presentation today,
U.S. participants – 1.866.652.5200
Global toll – 1.412.317.6060
A playback of the call will be available from one hour after the call until
U.S. participants – 1.877.344.7529
Global toll – 1.412.317.0088
Conference number – 10054114
To participate in the webcast, register at http://investor.icfi.com at least 15 minutes prior to the webcast and download and install any necessary software. An archive of the webcast will be available for one year following the live event.
The presentation accompanying the conference call and webcast will be available for one year following the live event at http://investor.icfi.com.
1 On a pro-forma and adjusted basis; assuming that a 2013 acquisition by Olson was effective on
About
About Olson
Olson is an integrated, next-generation agency with digital at its core, focused on driving rich engagement for many of the world’s leading brands. One of the top five independent, full-service agencies in
Caution Concerning Forward-looking Statements
Statements that are not historical facts and involve known and unknown risks and uncertainties are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements may concern our current expectations about our future results, plans, operations and prospects and involve certain risks, including those related to the government contracting industry generally; our particular business, including our dependence on contracts with U.S. federal government agencies; and our ability to acquire and successfully integrate businesses. These statements include those that refer to ICF’s current expectations about the acquisition of Olson. These and other factors that could cause our actual results to differ from those indicated in forward-looking statements are included in the "Risk Factors" section of our securities filings with the
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Investor contacts:
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douglas.beck@icfi.com
or
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Media contact:
ICF International
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