A local web development firm that works within both private and public sectors will be purchased by a company based in Northern Virginia.
ICF International Inc. (NASDAQ: ICFI) based in Fairfax, Va has agreed to acquire Richmond-based Ironworks Consulting LLC for $100 million. The purchase will be funded through ICF’s existing bank credit line. ICF expects to have revenues of $57 million this year
Founded in 2001, Ironworks is a web developing company that provides customer-based applications and IT services to Fortune 500 companies and government agencies. Commercial business is expected to account for approximately 65% of Ironworks’ 2011 revenues, representing its work for companies in the health, energy, nonprofit, financial services, and manufacturing, retail, and distribution markets. Government customers include the Centers for Disease Control and Prevention, the Department of Veterans Affairs, and the National Science Foundation.
“This transaction is emblematic of ICF’s strategy—to continuously expand our range of implementation service offerings in our markets,” said ICF International Chairman and CEO Sudhakar Kesavan. “Ironworks is an excellent strategic fit for ICF, adding complementary capabilities and clients across several of our key markets. With its record of sustained growth and deep client relationships in similar verticals, it strengthens our position in the fast-growing interactive digital services space.”
ICF International plans to benefit from the acquisition in the following ways:
- Leverages Ironworks’ Attractive Balance of Commercial and Government Verticals.
- Provides Entrée into Commercial Health Market and Additional Implementation Services in Commercial Energy
- Creates a Unique, End-to-End Provider in ICF’s Markets in the Rapidly-Growing Digital/Interactive Space.
ICF International had third-quarter revenue of $218.7 million, up 11% from a year earlier.