Information Services Group, Inc. · NASDAQ:III
Information Services — Merger or Acquisition (February 2011)
16 slides from Information Services's merger presentation, Feb 11, 2011
Slide 1: STA Consulting Acquisition Analyst and Investor Conference Call
STA Consulting Acquisition Analyst and Investor Conference Call February 10, 2011
Slide 2: Forward-Looking Statements
Forward-Looking Statements This communication contains “forward-looking statements” which represent the current expectations and beliefs of management of ISG concerning future events and their potential effects. Statements contained herein including words such as “anticipate,” “believe,” “contemplat
Slide 3: Presenters
Michael P. Connors Chairman & Chief Executive Officer, ISG David E. Berger EVP & Chief Financial Officer, ISG Mitt A. Salvaggio Managing Partner, STA Consulting
Slide 4: A premier independent information technology advisor serving the public sector
A premier independent information technology advisor serving the public sector
Slide 5: STA Consulting: Background
STA Consulting: Background Founded in 1997 by Managing Partner Mitt Salvaggio, the firm has senior level consultants experienced in governmental operations, information technology and project management STA Consulting is neither a vendor nor an implementer of ERP hardware or software, allowing the f
Slide 6: STA Consulting: Service Offerings
STA Consulting: Service Offerings STA Consulting advises clients across the entire ERP implementation process
Slide 7: STA Consulting: Client Overview
STA Consulting: Client Overview STA Consulting clients include state governments, counties, cities and local authorities
Slide 8: STA Consulting: Operating Model
STA Consulting: Operating Model STA Consulting has grown revenue at double-digit rates despite resource constraints in staffing and new business development While revenue growth is expected temporarily to slow in 2011 due to the planned completion of a large client project, STA Consulting has severa
Slide 9: ISG and STA: Strategic Rationale
ISG and STA: Strategic Rationale STA Consulting brings a track record of successful ERP advisory work in the public sector – an important target vertical for ISG Diversified client base, yet revenues are disproportionately concentrated in the southern U.S., offering significant opportunity to grow o
Slide 10: ISG and STA Consulting: Operational Rationale
ISG and STA Consulting: Operational Rationale Utilizing STA Consulting content and project management methodology, ISG can continue to expand beyond sourcing, delivering expertise in software deployment, change management, implementation and performance management ISG can help STA Consulting acceler
Slide 11: ISG and STA Consulting: Compelling Valuation
ISG and STA Consulting: Compelling Valuation While the process was competitive, ISG was the most attractive buyer due to: It approached STA independent of and prior to the process TPI’s strong brand perception as an independent advisor in the market Similar cultural values and ‘fit’ A history of joi
Slide 12: ISG and STA Consulting: Financial Model Implications
ISG and STA Consulting: Financial Model Implications Expect STA Consulting to deliver 2011 revenue of $14-$15 million and adjusted EBITDA of $2 million STA Consulting should be about $0.02-$0.03 accretive to 2011 EPS, including planned investments The transaction is structured to maximize balance sh
Slide 13: Summary
Summary Acquiring premier public sector advisory firm with particular expertise in ERP Well-known and highly regarded, and one with whom we have significant and direct experience Buying it at a compelling valuation Attractive revenue opportunities: Adding new public sector clients in new geographies
Slide 14: ISG: Overview and Update of our Acquisition Strategy
ISG: Overview and Update of our Acquisition Strategy Two significant acquisitions – Compass and STA Consulting – closed since the beginning of 2011 Renewed interest in strategic discussions across multiple sectors signals a recovering economic environment and positive deal flow Remaining both active
Slide 15: STA Consulting: Managing Partner Mitt Salvaggio
STA Consulting: Managing Partner Mitt Salvaggio Founder with more than 25 years of diversified experience in information technology, project management and government services Certified Public Accountant, Certified Government Financial Manager, Certified Information Technology Professional
Slide 16: ISG Information Services Group
ISG INFORMATION SERVICES GROUP NASDAQ: III
Information Services Group — Merger or Acquisition (February 2011) on 6ix