ICF has entered into a definitive agreement to acquire SemanticBits, a partner to U.S. federal health agencies for mission-critical digital modernization solutions.
SemanticBits is expected to generate approximately $135 million in annual revenue in 2022. Approximately $115 million of that is expected to be recurring in 2023, reflecting the completion of several small business contracts.
“This latest acquisition is in keeping with our strategy to complement organic growth with acquisitions that strengthen ICF’s position in key growth markets and provide meaningful revenue synergies over time,” said John Wasson, ICF chair and CEO.
The $220 million transaction will be funded by ICF’s existing credit facility. The transaction is expected to be accretive to ICF’s earnings per share upon closing.
“SemanticBits’ advanced health IT and data science solutions accelerate and improve mission impact and health outcomes,” Wasson said. “SemanticBits’ strong position at CMS also significantly expands ICF’s addressable market to include this large agency, which is committed to strengthening and modernizing the country’s healthcare system to provide access to high-quality care.”
SemanticBits provides a full suite of scalable digital modernization services using open-source frameworks, including end-to-end agile at scale development capabilities, cloud-native solutions, data analytics and human-centered design.
“We are excited to join ICF and offer our civilian agency clients advanced health IT technology and data science solutions informed by deep domain expertise,” said SemanticBits CEO Ram Chilukuri. “Together, we can scale our ability to support federal agencies and help unlock new health insights and critical opportunities.”