Hackett Buys Technolab

(RTTNews) - Hackett Group, Inc. (HCKT) said Tuesday that it has acquired Technolab International Corp.'s U.S., Canada and Uruguay operations.

The acquisition brings many strategic synergies to Hackett. Hackett Group's EPM practice represents the Company's single largest practice area.

Under the terms of the acquisition agreement, Hackett will pay $4.0 million in cash and stock. The stock issued is subject to a four year vesting provision. The seller will have the ability to earn an additional $8.0 million in contingent consideration in cash and stock subject to an earn-out based on actual results achieved.

At this time, Hackett expects that the Technolab acquisition will add about $9.0 million to $11.0 million in annualized Application Management Services and EPM Consulting revenues to The Hackett Group.

In light of the acquisition, Hackett updated its guidance for the first quarter of 2014 for total revenues to be in the range of $53.0 million to $55.0 million, and estimates pro forma earnings per share to be in the range of $0.06 to $0.08.

Previously, the company forecast total revenue for the first quarter of 2014 to be in the range of $51.0 million to $53.0 million, and estimated pro forma earnings per share to be in the range of $0.06 to $0.07.

Analysts polled by Thomson Reuters currently expect the company to earn $0.08 per share on revenue of $52.60 million for the first quarter.