ICF Inks Deal to Buy Digital Transformation Provider ITG

John Wasson, ICF

John Wasson, ICF

ICF International has signed an agreement to acquire Incentive Technology Group, a Virginia-based cloud-based platform services company focused on federal IT modernization.

Based in Crystal City and founded in 2010, ITG is a 350-plus team that works mainly with federal agencies and provides full lifecycle solutions using a wide array of technology platforms.

The deal “enhances ICF’s strategic consulting and analytics capabilities with powerful technology capabilities,” ICF President and CEO John Wasson said in a Jan. 13 company blog post. “Together, we will be an IT modernization powerhouse — which is exactly what agencies need right now.”

In 2019, ITG had revenues of roughly $90 million and ended the year with a revenue run-rate in excess of $100 million. The purchase price is $255 million, funded by ICF’s existing credit facility.

“ICF expects the net present value of the tax benefit of this deal to be around $33 million,” according to a release from the company. “ITG’s EBITDA margin is in the mid-teens. Following the completion of this acquisition, the company’s leverage ratio is expected to be less than 2.7.”

ITG Chief Operating Officer JC Chidiac said the combined team “will be uniquely positioned to architect and implement technology platforms that drive the strategic transformation agencies need to meet their new mandates.”

“Importantly, this is an excellent cultural fit for our collaborative, entrepreneurial organization, which was a key determinant in our decision to join together with ICF,” he added.

This is the first acquisition ICF has made since Wasson took the helm Oct. 1, 2019.

The deal is expected to close late January.

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