Having seen a significant upturn in interview activity since the beginning of September, Prism Executive Recruitment conducted a market survey in early November with a prequalified sample of candidates and employers, with responses from 45 employers and 153 candidates.
The headline results show candidates are slightly more confident but, digging deeper into the responses, opinions are somewhat polarised, with some finding the market very buoyant and more active, while many others are commenting that things are very slow.
As you might expect of a recruitment agency database, many are actively interviewing but many of these are making negative comments about the market. Common themes relate to slow recruitment processes, salary pressures, window shopping and employers setting very tight specifications and unwilling to compromise.
On the employer side, the results are quite startling: the overwhelming majority are primed to recruit AND are finding candidates hard to find. While this might seem at odds with the candidate experience it suggests employers are chasing the same population of candidates who have the "best" CVs AND the "in demand" skillsets and sectors. These include: Public Sector (particularly security cleared candidates), Energy/Utilities, Financial Services, Strategic IT, risk, lean and transformation (both consulting and delivery).
See the full survey results here.
Monday, November 23, 2009
Friday, October 30, 2009
Capgemini Makes Significant Investment in Business Information Management to Help Customers Leverage Enterprise Data for Competitive Advantage
The Capgemini Group today announced a major investment to reinforce its capabilities in Business Information Management (BIM), a set of services that enable enterprises to manage their information lifecycle. Organisations are increasingly looking for new strategies and techniques to retain, organise and gain insights from the huge volumes of disparately organised data, stored across their business applications. In response, the Group plans to hire or redeploy an additional 3,000 BIM consultants, extending its total number of BIM consultants to over 7,000. Capgemini will also create a Center of Excellence in India, staffed initially with 1,000 specialists, to provide state-of-the art BIM technology solutions for customers globally. This is the first in a series of global strategic portfolio announcements planned over the next two quarters, et to mobilise all the Group’s disciplines, supported by a strong sales push.
The BIM services provided by Capgemini include strategic information management blueprinting; data architecture, warehousing and management; data analysis and performance reporting; and electronic file management, retrieval and collaboration portals.
BIM is a key priority for businesses in the current economic climate. According to analyst group AMR Research, companies will spend $59.3 billion on core Business Intelligence / Performance Management activities in 2010 1.
“Large enterprises are increasingly seeing the need to enhance the effectiveness and capabilities of existing business information systems in order to meet demanding compliance requirements and, in particular, to gain a deeper and more comprehensive understanding of business trends and performance,” commented Paul Nannetti, General Manager of Capgemini’s global BIM service line. “We are seeing huge demand for these services and are mobilising our global infrastructure to meet them. To cater to the specific needs of key markets, we also offer sector-specific solutions for clients in the banking and insurance, life sciences, energy & utilities, retail and consumer product, and telecoms sectors.”
In delivering BIM services, Capgemini will work with the most appropriate technology solutions based on the specific requirements of each client. They will be deployed using Capgemini’s Rightshore® methodology, while the India-based BIM Center of Excellence will act as a ‘center of gravity’ for Capgemini’s strategy, adapting and rolling out best practices globally and ensuring that service levels across clients can be continually improved. Capgemini will use its Intelligent Enterprise™ assessment process to quickly analyse needs and develop an enterprise-ready strategic framework and roadmap for BIM.
Vince Kelly, CIO of Orange Business Services, and Patrick Feuillatre, Head of Business Intelligence Software Factory, Orange Business Services commented: “In a drive to streamline our costs while maximising our capacity, we have adopted a new sourcing model which is based on a distributed approach and managed in accordance with defined, structured metrics. Capgemini’s scale and capability in Business Information Management enables us to manage our business information to achieve better overall quality and productivity.”
The additional investment will build on Capgemini’s substantial existing BIM capabilities. The Group has been supporting BIM initiatives with customers for over 15 years, delivering customer-focused solutions based on industry best practices. Capgemini’s expertise in BIM implementations was recently celebrated by Teradata, which named it EMEA SI Partner of the year as a result of its ability to help clients gain strategic insight, recognise emerging trends and respond quickly to business requirements.
More information on Capgemini BIM services.
About Capgemini
Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working, the Collaborative Business Experience. The Group relies on its global delivery model called Rightshore®, which aims to get the right balance of the best talent from multiple locations, working as one team to create and deliver the optimum solution for clients. Present in more than 30 countries, Capgemini reported 2008 global revenues of EUR 8.7 billion (approximately USD $12.74 billion) and employs 90,000 people worldwide.
More information is available at www.capgemini.com.
The BIM services provided by Capgemini include strategic information management blueprinting; data architecture, warehousing and management; data analysis and performance reporting; and electronic file management, retrieval and collaboration portals.
BIM is a key priority for businesses in the current economic climate. According to analyst group AMR Research, companies will spend $59.3 billion on core Business Intelligence / Performance Management activities in 2010 1.
“Large enterprises are increasingly seeing the need to enhance the effectiveness and capabilities of existing business information systems in order to meet demanding compliance requirements and, in particular, to gain a deeper and more comprehensive understanding of business trends and performance,” commented Paul Nannetti, General Manager of Capgemini’s global BIM service line. “We are seeing huge demand for these services and are mobilising our global infrastructure to meet them. To cater to the specific needs of key markets, we also offer sector-specific solutions for clients in the banking and insurance, life sciences, energy & utilities, retail and consumer product, and telecoms sectors.”
In delivering BIM services, Capgemini will work with the most appropriate technology solutions based on the specific requirements of each client. They will be deployed using Capgemini’s Rightshore® methodology, while the India-based BIM Center of Excellence will act as a ‘center of gravity’ for Capgemini’s strategy, adapting and rolling out best practices globally and ensuring that service levels across clients can be continually improved. Capgemini will use its Intelligent Enterprise™ assessment process to quickly analyse needs and develop an enterprise-ready strategic framework and roadmap for BIM.
Vince Kelly, CIO of Orange Business Services, and Patrick Feuillatre, Head of Business Intelligence Software Factory, Orange Business Services commented: “In a drive to streamline our costs while maximising our capacity, we have adopted a new sourcing model which is based on a distributed approach and managed in accordance with defined, structured metrics. Capgemini’s scale and capability in Business Information Management enables us to manage our business information to achieve better overall quality and productivity.”
The additional investment will build on Capgemini’s substantial existing BIM capabilities. The Group has been supporting BIM initiatives with customers for over 15 years, delivering customer-focused solutions based on industry best practices. Capgemini’s expertise in BIM implementations was recently celebrated by Teradata, which named it EMEA SI Partner of the year as a result of its ability to help clients gain strategic insight, recognise emerging trends and respond quickly to business requirements.
More information on Capgemini BIM services.
About Capgemini
Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working, the Collaborative Business Experience. The Group relies on its global delivery model called Rightshore®, which aims to get the right balance of the best talent from multiple locations, working as one team to create and deliver the optimum solution for clients. Present in more than 30 countries, Capgemini reported 2008 global revenues of EUR 8.7 billion (approximately USD $12.74 billion) and employs 90,000 people worldwide.
More information is available at www.capgemini.com.
New Global Leader for PricewaterhouseCoopers Communications Practice
PricewaterhouseCoopers (PwC) has appointed Colin Brereton as the new leader of its Global Communications Industry Group.
Colin, a senior partner at PwC, has nearly 20 years experience of working with clients in the technology and telecoms sectors. He specialises in leading global multidisciplinary teams (from assurance, advisory and tax) on delivering solutions for business challenges facing some of PwC’s largest international Communications clients. He will draw on his experience to lead PwC’s Communications practice as it helps clients through the continuing unstable economic environment while preparing them for the challenges and opportunies ahead.
He joined PwC in 1982 qualifying as a Chartered Accountant shortly thereafter and has been specialising in the technology and telecoms industries for almost 20 years.
Commenting on his appointment, Colin said:
“Though many are saying that the worst of the economic downturn is past, opinion is still divided. I am delighted to take over the reins of our global practice to help operators in the sector lay down their plans for recovery as well as position themselves to take advantage of the new business opportunities which are arising in emerging markets, both geographical and technological.”
PricewaterhouseCoopers provides industry-focused assurance, tax and advisory services to build public trust and enhance value for our clients and their stakeholders. More than 163,000 people in 151 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.
Colin, a senior partner at PwC, has nearly 20 years experience of working with clients in the technology and telecoms sectors. He specialises in leading global multidisciplinary teams (from assurance, advisory and tax) on delivering solutions for business challenges facing some of PwC’s largest international Communications clients. He will draw on his experience to lead PwC’s Communications practice as it helps clients through the continuing unstable economic environment while preparing them for the challenges and opportunies ahead.
He joined PwC in 1982 qualifying as a Chartered Accountant shortly thereafter and has been specialising in the technology and telecoms industries for almost 20 years.
Commenting on his appointment, Colin said:
“Though many are saying that the worst of the economic downturn is past, opinion is still divided. I am delighted to take over the reins of our global practice to help operators in the sector lay down their plans for recovery as well as position themselves to take advantage of the new business opportunities which are arising in emerging markets, both geographical and technological.”
PricewaterhouseCoopers provides industry-focused assurance, tax and advisory services to build public trust and enhance value for our clients and their stakeholders. More than 163,000 people in 151 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.
Catapult Technology Grows Management Consulting Practice
Catapult Technology, Ltd. (Catapult), a leading Service-Disabled Veteran-Owned (SDVO) Information Technology (IT) contractor to the federal government and private sector, has expanded its Management Consulting/Program Management Support practice with the addition of three new projects and an expansion of the company's largest client.
Catapult's new projects include initiatives at the U.S. Department of Transportation (DOT), the U.S. General Services Administration (GSA), and the U.S. Commodity Futures Trading Commission (CFTC).
"As part of Catapult's Technology and Management Solutions division, the Management Consulting practice helps government agencies and other entities to work more efficiently, with a greater sense of scope and mission," said Randy J. Slager, CEO, Chairman, and founder of Catapult "We're helping our customers adopt federal reform initiatives to ensure that government procedures, laws, and rules are being followed. We bring consistency and accountability to organizations so they can run more smoothly."
Catapult's new projects include:
The U.S. Department of Transportation. Catapult is providing Senior Executive Coaching services to DOT's Senior Executive Service (SES) and GS-15 level employees. The coaching consists of personality assessments, such as the Myers-Briggs Type Indicator (MBTI); identifying personality traits and interpersonal communications skills to provide a thorough understanding of perceptions and assumptions about people and their environments; undertaking 360 Degree performance assessments of people in leadership roles; conducting facilitated sessions to improve group performance; and conducting individual coaching of senior leaders.
The General Services Administration. Catapult will produce an integrated document detailing GSA's IT business system and infrastructure modernization efforts covering a three-year period (2010-2012). Specifically, Catapult will develop an IT Modernization Plan for GSA's IT infrastructure and business applications written in "plain language" that can be shared with non-technical executives and managers; develop an "as-is" view of the current IT environment; develop a three-year roadmap of modernization efforts; and develop a high-level enterprise sequencing plan. This project comes on the heels of Catapult's largest contract, the $200 million General Services Administration (GSA) Infrastructure Technology Global Operations (GITGO)
contract that Catapult won in March 2007.
The U.S. Commodity Futures Trading Commission (CFTC). Catapult is providing travel support for CFTC employees, handling travel arrangements, ensuring that government-wide travel regulations are being followed, and ensuring that travel-related expenses are appropriately captured, reimbursed and documented. It is a one-year contract with a CFTC option for an additional year.
About Catapult Technology
Catapult Technology, Ltd. provides Technology and Management Solutions, Enterprise Systems, and Information Management Services to the federal government. Catapult is focused on quality service delivery and has been independently certified as a Software Engineering Institute (SEI) Capability Maturity Model Integration (CMMI) Level 3 company and is also ISO 9001:2000 registered. The company was awarded the Government Contracting Firm of the Year by the Tech Council of Maryland in 2009, shared the Best in IT Infrastructure Award by the Outsourcing Center with General Services Administration (GSA) in 2009, and was ranked 21(st) on the federal
government's Top 100 Governmentwide Acquisition Contractors (GWAC) list in 2008. Catapult was founded in 1996 and is headquartered in Bethesda, Maryland.
Go to www.catapulttechnology.com for more information.
Catapult's new projects include initiatives at the U.S. Department of Transportation (DOT), the U.S. General Services Administration (GSA), and the U.S. Commodity Futures Trading Commission (CFTC).
"As part of Catapult's Technology and Management Solutions division, the Management Consulting practice helps government agencies and other entities to work more efficiently, with a greater sense of scope and mission," said Randy J. Slager, CEO, Chairman, and founder of Catapult "We're helping our customers adopt federal reform initiatives to ensure that government procedures, laws, and rules are being followed. We bring consistency and accountability to organizations so they can run more smoothly."
Catapult's new projects include:
The U.S. Department of Transportation. Catapult is providing Senior Executive Coaching services to DOT's Senior Executive Service (SES) and GS-15 level employees. The coaching consists of personality assessments, such as the Myers-Briggs Type Indicator (MBTI); identifying personality traits and interpersonal communications skills to provide a thorough understanding of perceptions and assumptions about people and their environments; undertaking 360 Degree performance assessments of people in leadership roles; conducting facilitated sessions to improve group performance; and conducting individual coaching of senior leaders.
The General Services Administration. Catapult will produce an integrated document detailing GSA's IT business system and infrastructure modernization efforts covering a three-year period (2010-2012). Specifically, Catapult will develop an IT Modernization Plan for GSA's IT infrastructure and business applications written in "plain language" that can be shared with non-technical executives and managers; develop an "as-is" view of the current IT environment; develop a three-year roadmap of modernization efforts; and develop a high-level enterprise sequencing plan. This project comes on the heels of Catapult's largest contract, the $200 million General Services Administration (GSA) Infrastructure Technology Global Operations (GITGO)
contract that Catapult won in March 2007.
The U.S. Commodity Futures Trading Commission (CFTC). Catapult is providing travel support for CFTC employees, handling travel arrangements, ensuring that government-wide travel regulations are being followed, and ensuring that travel-related expenses are appropriately captured, reimbursed and documented. It is a one-year contract with a CFTC option for an additional year.
About Catapult Technology
Catapult Technology, Ltd. provides Technology and Management Solutions, Enterprise Systems, and Information Management Services to the federal government. Catapult is focused on quality service delivery and has been independently certified as a Software Engineering Institute (SEI) Capability Maturity Model Integration (CMMI) Level 3 company and is also ISO 9001:2000 registered. The company was awarded the Government Contracting Firm of the Year by the Tech Council of Maryland in 2009, shared the Best in IT Infrastructure Award by the Outsourcing Center with General Services Administration (GSA) in 2009, and was ranked 21(st) on the federal
government's Top 100 Governmentwide Acquisition Contractors (GWAC) list in 2008. Catapult was founded in 1996 and is headquartered in Bethesda, Maryland.
Go to www.catapulttechnology.com for more information.
Resources Connection to Create New Corporate Advisory and Restructuring Business Through Acquisition of Sitrick And Company and Brincko Associates
Resources Connection, Inc., (Nasdaq: RECN), today announced the formation of a Corporate Advisory and Restructuring subsidiary through the acquisition of the business of Sitrick And Company, Inc., one of the nation's leading strategic communications firms and Brincko Associates, Inc., a widely-respected corporate advisory and restructuring firm.
The acquisitions, which include the purchase of certain assets of both Sitrick And Company and Brincko Associates, and the personal goodwill of Michael Sitrick, CEO of Sitrick and Company, will be made for aggregate initial consideration of $43.3 million, comprising $28.2 million in cash and approximately 810,000 shares of restricted stock which, for financial reporting purposes, will be valued at the closing price of Resources' stock on the date the transaction closes, plus an earn-out based on the achievement of certain adjusted earnings before interest, income taxes, depreciation and amortization ("EBITDA") levels over a period of four years from the date of closing. The transaction is subject to customary closing conditions, including the completion of the audited financial statements for Brincko Associates, and is expected to close within the next 30 days. The principal acquisition
agreement provides that the employees of the new subsidiary would share in up to 20 percent of the earn-out based upon the achievement of certain growth targets.
Following the closing, this new Resources subsidiary will be called Sitrick Brincko Group, LLC. Michael Sitrick will be Chairman and CEO of the new subsidiary and will report directly to Donald B. Murray, Chairman and CEO of Resources. John Brincko will be President and COO of the new subsidiary.
Sitrick And Company, with offices in Los Angeles, New York, San Francisco and Miami, specializes in corporate, financial, transactional and crisis communications. It was founded in 1989. Headquartered in Southern California, Brincko Associates is an international management consulting firm established in 1979.
Mr. Murray said the transaction, which is expected to be immediately accretive, will make Resources a meaningful player in the corporate advisory and restructuring market.
"Strategically, the acquisition of the business of Sitrick And Company augments Resources' "first in" capabilities as corporate issues arise and require immediate communication strategy formulation and execution," Mr. Murray said. "In such situations, companies often require significant assistance to react proactively to the business issues at hand. Such matters include business and financial restructuring, dispute resolution assistance, interim senior-level management or forensic accounting assistance."
"Brincko Associates brings significant, added expertise in each of these areas to Resources. By combining the specialized skill sets of these two businesses with Resources' consultant capabilities, geographic footprint and client base, we believe we will greatly increase our ability to assist clients during challenging periods in a more cost effective manner than currently offered by traditional consulting firms," he said.
"All one has to do is to read the daily headlines to see why we are so excited about this acquisition," Mr. Murray said. "Despite predictions that the recession is over, the business landscape remains littered with troubled companies and indeed whole industries. The constricted financing environment over the past couple of years has further exacerbated these problems and deepened the pipeline of troubled companies. We believe this transaction provides significant opportunities for growth."
"The anticipated synergies between Sitrick, Brincko and Resources not only provide this vehicle for growth," he stated, "but what we all believe is a cost-effective means for companies undergoing change to work through their problems. Sitrick's and Brincko's ability to provide expert senior-level corporate advisory, turnaround and communications counsel is recognized nationwide. Resources, with over 2000 consultants and 82 locations throughout the world, provides the means to staff assignments with as many highly-qualified accounting, human resources and IT professionals as required, at a cost that is considerably less than comparable turnaround firms are charging."
Mr. Sitrick added, "We believe there is a paradigm shift occurring in the advisory and restructuring business due to the cash squeeze that companies in the current economic environment are experiencing. This is particularly true for those attempting a restructuring."
He continued, "What we are hearing from Boards, companies and creditors is they recognize that to get the best talent, they have to pay the going rate for the top people - lawyers, turnaround professionals and communications executives. They are looking for alternatives, with respect to the rates they have to pay, when they must replace or augment an accounting, human resources or IT department. Sitrick's and Brincko's combination with Resources provides us - and our clients - with a very attractive quality and financial alternative."
Mr. Brincko stated, "By way of example only, a review of one bankruptcy court filing showed that if the debtor used Resources' professionals for a number of finance, accounting and IT roles instead of the service provider whose professionals were included in the fee application, the entity would have achieved substantial savings."
Mr. Brincko continued, "There is a lot of money that could be saved by just replacing one group of accountants and IT professionals for another with comparable or greater experience. And remember, we are not talking about changing out the top executives in this matter, but the mid- and lower-level professionals with like or more experienced people."
Mr. Sitrick added, "The change that John and I are talking about could make the difference between a company surviving and successfully emerging from a restructuring and one going into liquidation - at the very least, it should result in an increased recovery for creditors."
Mr. Murray added, "We believe that Mike Sitrick, John Brincko and their teams are among the best known and most respected professionals in their fields. In the restructuring segment of Sitrick's business, for example, over the past 20 years, his firm has managed the strategic communications for approximately 300 companies in Chapter 11. These include such well-known matters as Delphi, Conseco, Inc., Collins & Aikman, Federal-Mogul Corporation, Global Crossing, Interstate Bakeries, Laidlaw, Mirant Corporation, Public Service of New Hampshire, Purina Mills, Refco, Service Merchandise, Singer, Solutia, US Airways, Orange County, CA, America West Airlines, Barneys New York and Worldcom. This year, the firm is handling or has handled 15 Chapter 11 cases and five out-of-court restructurings."
He continued, "John Brincko, who is in the process of completing a chapter 11 restructuring assignment at Spansion, Inc., has managed such restructurings as Barneys New York, Consolidated Freightways, Mossimo, Inc., Knudsen Foods, Inc., CalComp Technology, Sun World International, Sahlen & Associates, Strouds and Omnimedical. In each of these matters, John Brincko served as the CEO (or, as to Barneys New York, President and COO, and as to Spansion as CRO) of each company during a portion of the restructuring."
In addition to its strategic communication counseling in restructuring cases, the Sitrick firm has been involved in a wide spectrum of matters including mergers and acquisitions, proxy contests, withhold vote contests, product recalls, business litigation of all kinds - from patent infringement suits to allegations of stock manipulation, financial restatements and write-downs, state and federal government investigations, criminal indictments, insurance fraud, labor issues (including emergency executive transitions, sexual harassment and sex discrimination cases), fraudulent conveyance cases, trade disputes, environmental issues and product liability claims.
Brincko Associates, in addition to restructuring services, debtor representation, liquidation management and business dissolution management, provides such other services as customer, vendor and employee relations consulting, crisis management, financial structure analysis, cash management, interim management, complex negotiations, risk assessment, cost reduction and seller representation.
Mr. Murray said that Sitrick and Brincko's work in these and other areas should also provide synergy for both Sitrick and Resources to grow their other lines of business.
"We have over 2,100 clients worldwide," he said, "and all of them will likely have a situation at one time or another that could benefit from Sitrick Brincko Group's help across all areas of specialty."
Mr. Sitrick said, "Like John, I have had many opportunities to sell or merge my business over the years but chose to stay independent. This combination gives me an opportunity to not only partner with one of the most respected people in the corporate advisory and restructuring business, but to operate on a global platform utilizing the outstanding professionals of Resources Global Professionals. Most importantly, it provides both John and me with the opportunity to provide real added value to clients and potential clients on a global basis."
Mr. Brincko said, "Both Mike and I feel that this transaction provides a unique opportunity: to help companies, to help creditors and to take our practices to a new level. Like Mike, I am very excited about the opportunity this combination provides and look forward to the weeks, months and years ahead."
For the twelve months ended December 31, 2008 and the six months ended June 30, 2009, Sitrick And Company and Brincko Associates had combined revenue of approximately $24.4 million and $14.4 million, respectively, and adjusted EBITDA of $10.5 million and $6.6 million, respectively. Adjusted EBITDA represents EBITDA adjusted for certain expenses which are not anticipated to recur post-transaction.
In connection with the acquisition, at the closing, Michael Sitrick and John Brincko will enter into a 54-month employment contract with the Resources subsidiary.
ABOUT RESOURCES GLOBAL PROFESSIONALS
Resources Global Professionals, the operating subsidiary of Resources Connection, Inc. (NASDAQ: RECN), is a multinational professional services firm that helps business leaders execute internal initiatives. Partnering with business leaders, Resources Global Professionals drives internal change across all parts of a global enterprise - finance and accounting, information management, internal audit, human capital, legal services and supply chain management.
Resources Global was founded in 1996 within a Big Four accounting firm. Today, it is a publicly traded company with over 2,700 professionals, from 82 practice offices, annually serving 2,100 clients around the world. Its professionals have an average of 18-years of experience in fields such as finance and accounting, human capital, information management, internal audit, legal and supply chain.
Headquartered in Irvine, California, Resources Global has served 84 of the
Fortune 100 companies.
The Company is listed on the NASDAQ Global Select Market, the exchange's highest tier by listing standards. More information about Resources Global is available at http://www.resourcesglobal.com.
Resources will hold a conference call for interested analysts and investors at 8:30 a.m., ET tomorrow, October 30, 2009. This conference call will be available for listening via a webcast on the Company's website: http://www.resourcesglobal.com.
The acquisitions, which include the purchase of certain assets of both Sitrick And Company and Brincko Associates, and the personal goodwill of Michael Sitrick, CEO of Sitrick and Company, will be made for aggregate initial consideration of $43.3 million, comprising $28.2 million in cash and approximately 810,000 shares of restricted stock which, for financial reporting purposes, will be valued at the closing price of Resources' stock on the date the transaction closes, plus an earn-out based on the achievement of certain adjusted earnings before interest, income taxes, depreciation and amortization ("EBITDA") levels over a period of four years from the date of closing. The transaction is subject to customary closing conditions, including the completion of the audited financial statements for Brincko Associates, and is expected to close within the next 30 days. The principal acquisition
agreement provides that the employees of the new subsidiary would share in up to 20 percent of the earn-out based upon the achievement of certain growth targets.
Following the closing, this new Resources subsidiary will be called Sitrick Brincko Group, LLC. Michael Sitrick will be Chairman and CEO of the new subsidiary and will report directly to Donald B. Murray, Chairman and CEO of Resources. John Brincko will be President and COO of the new subsidiary.
Sitrick And Company, with offices in Los Angeles, New York, San Francisco and Miami, specializes in corporate, financial, transactional and crisis communications. It was founded in 1989. Headquartered in Southern California, Brincko Associates is an international management consulting firm established in 1979.
Mr. Murray said the transaction, which is expected to be immediately accretive, will make Resources a meaningful player in the corporate advisory and restructuring market.
"Strategically, the acquisition of the business of Sitrick And Company augments Resources' "first in" capabilities as corporate issues arise and require immediate communication strategy formulation and execution," Mr. Murray said. "In such situations, companies often require significant assistance to react proactively to the business issues at hand. Such matters include business and financial restructuring, dispute resolution assistance, interim senior-level management or forensic accounting assistance."
"Brincko Associates brings significant, added expertise in each of these areas to Resources. By combining the specialized skill sets of these two businesses with Resources' consultant capabilities, geographic footprint and client base, we believe we will greatly increase our ability to assist clients during challenging periods in a more cost effective manner than currently offered by traditional consulting firms," he said.
"All one has to do is to read the daily headlines to see why we are so excited about this acquisition," Mr. Murray said. "Despite predictions that the recession is over, the business landscape remains littered with troubled companies and indeed whole industries. The constricted financing environment over the past couple of years has further exacerbated these problems and deepened the pipeline of troubled companies. We believe this transaction provides significant opportunities for growth."
"The anticipated synergies between Sitrick, Brincko and Resources not only provide this vehicle for growth," he stated, "but what we all believe is a cost-effective means for companies undergoing change to work through their problems. Sitrick's and Brincko's ability to provide expert senior-level corporate advisory, turnaround and communications counsel is recognized nationwide. Resources, with over 2000 consultants and 82 locations throughout the world, provides the means to staff assignments with as many highly-qualified accounting, human resources and IT professionals as required, at a cost that is considerably less than comparable turnaround firms are charging."
Mr. Sitrick added, "We believe there is a paradigm shift occurring in the advisory and restructuring business due to the cash squeeze that companies in the current economic environment are experiencing. This is particularly true for those attempting a restructuring."
He continued, "What we are hearing from Boards, companies and creditors is they recognize that to get the best talent, they have to pay the going rate for the top people - lawyers, turnaround professionals and communications executives. They are looking for alternatives, with respect to the rates they have to pay, when they must replace or augment an accounting, human resources or IT department. Sitrick's and Brincko's combination with Resources provides us - and our clients - with a very attractive quality and financial alternative."
Mr. Brincko stated, "By way of example only, a review of one bankruptcy court filing showed that if the debtor used Resources' professionals for a number of finance, accounting and IT roles instead of the service provider whose professionals were included in the fee application, the entity would have achieved substantial savings."
Mr. Brincko continued, "There is a lot of money that could be saved by just replacing one group of accountants and IT professionals for another with comparable or greater experience. And remember, we are not talking about changing out the top executives in this matter, but the mid- and lower-level professionals with like or more experienced people."
Mr. Sitrick added, "The change that John and I are talking about could make the difference between a company surviving and successfully emerging from a restructuring and one going into liquidation - at the very least, it should result in an increased recovery for creditors."
Mr. Murray added, "We believe that Mike Sitrick, John Brincko and their teams are among the best known and most respected professionals in their fields. In the restructuring segment of Sitrick's business, for example, over the past 20 years, his firm has managed the strategic communications for approximately 300 companies in Chapter 11. These include such well-known matters as Delphi, Conseco, Inc., Collins & Aikman, Federal-Mogul Corporation, Global Crossing, Interstate Bakeries, Laidlaw, Mirant Corporation, Public Service of New Hampshire, Purina Mills, Refco, Service Merchandise, Singer, Solutia, US Airways, Orange County, CA, America West Airlines, Barneys New York and Worldcom. This year, the firm is handling or has handled 15 Chapter 11 cases and five out-of-court restructurings."
He continued, "John Brincko, who is in the process of completing a chapter 11 restructuring assignment at Spansion, Inc., has managed such restructurings as Barneys New York, Consolidated Freightways, Mossimo, Inc., Knudsen Foods, Inc., CalComp Technology, Sun World International, Sahlen & Associates, Strouds and Omnimedical. In each of these matters, John Brincko served as the CEO (or, as to Barneys New York, President and COO, and as to Spansion as CRO) of each company during a portion of the restructuring."
In addition to its strategic communication counseling in restructuring cases, the Sitrick firm has been involved in a wide spectrum of matters including mergers and acquisitions, proxy contests, withhold vote contests, product recalls, business litigation of all kinds - from patent infringement suits to allegations of stock manipulation, financial restatements and write-downs, state and federal government investigations, criminal indictments, insurance fraud, labor issues (including emergency executive transitions, sexual harassment and sex discrimination cases), fraudulent conveyance cases, trade disputes, environmental issues and product liability claims.
Brincko Associates, in addition to restructuring services, debtor representation, liquidation management and business dissolution management, provides such other services as customer, vendor and employee relations consulting, crisis management, financial structure analysis, cash management, interim management, complex negotiations, risk assessment, cost reduction and seller representation.
Mr. Murray said that Sitrick and Brincko's work in these and other areas should also provide synergy for both Sitrick and Resources to grow their other lines of business.
"We have over 2,100 clients worldwide," he said, "and all of them will likely have a situation at one time or another that could benefit from Sitrick Brincko Group's help across all areas of specialty."
Mr. Sitrick said, "Like John, I have had many opportunities to sell or merge my business over the years but chose to stay independent. This combination gives me an opportunity to not only partner with one of the most respected people in the corporate advisory and restructuring business, but to operate on a global platform utilizing the outstanding professionals of Resources Global Professionals. Most importantly, it provides both John and me with the opportunity to provide real added value to clients and potential clients on a global basis."
Mr. Brincko said, "Both Mike and I feel that this transaction provides a unique opportunity: to help companies, to help creditors and to take our practices to a new level. Like Mike, I am very excited about the opportunity this combination provides and look forward to the weeks, months and years ahead."
For the twelve months ended December 31, 2008 and the six months ended June 30, 2009, Sitrick And Company and Brincko Associates had combined revenue of approximately $24.4 million and $14.4 million, respectively, and adjusted EBITDA of $10.5 million and $6.6 million, respectively. Adjusted EBITDA represents EBITDA adjusted for certain expenses which are not anticipated to recur post-transaction.
In connection with the acquisition, at the closing, Michael Sitrick and John Brincko will enter into a 54-month employment contract with the Resources subsidiary.
ABOUT RESOURCES GLOBAL PROFESSIONALS
Resources Global Professionals, the operating subsidiary of Resources Connection, Inc. (NASDAQ: RECN), is a multinational professional services firm that helps business leaders execute internal initiatives. Partnering with business leaders, Resources Global Professionals drives internal change across all parts of a global enterprise - finance and accounting, information management, internal audit, human capital, legal services and supply chain management.
Resources Global was founded in 1996 within a Big Four accounting firm. Today, it is a publicly traded company with over 2,700 professionals, from 82 practice offices, annually serving 2,100 clients around the world. Its professionals have an average of 18-years of experience in fields such as finance and accounting, human capital, information management, internal audit, legal and supply chain.
Headquartered in Irvine, California, Resources Global has served 84 of the
Fortune 100 companies.
The Company is listed on the NASDAQ Global Select Market, the exchange's highest tier by listing standards. More information about Resources Global is available at http://www.resourcesglobal.com.
Resources will hold a conference call for interested analysts and investors at 8:30 a.m., ET tomorrow, October 30, 2009. This conference call will be available for listening via a webcast on the Company's website: http://www.resourcesglobal.com.
Xtivia, Information Technology Consulting Company, Rated Number One Vendor by IT Professionals
VendorRate, a respected provider of ratings and comparisons of technology vendors, announced that Xtivia, Inc. was the highest rated consulting company with an impressive score of 95. Xtivia was ranked first amongst such companies as Oracle and Nortel.
Xtivia, an information technology and Internet solutions firm, was rated number one by information technology professionals. In fact, Xtivia led by earning an exceptional rating in all ten benchmarks. Xtivia has clients in a range of industries including airlines, banking, biotechnology, healthcare and government.
Dennis Robinson, president and CEO of Xtivia, attributes the success to the commitment Xtivia has towards providing quality support. “This rating would not have been possible without our dedicated staff, our excellent industry leading technology partners and above all, our customers. This report only fuels our desire to continue our efforts to be a trusted resource. We are all very proud to have received this recognition by our customers,” says Robinson.
VendorRate users rate vendors confidentially on 10 specific performance criteria including customer service, reliability, integrity, budget and effectiveness. The results produce a cumulative score up to 100. VendorRate collected the data in July, August and September and released the findings on October 14, 2009.
About Xtivia
Xtivia, Inc. is a leading information technology and Internet solutions firm that specializes in helping organizations manage critical business information and processes across all communication channels. Xtivia has offices in New York, New Jersey, Colorado and Texas and is a subsidiary of Matrix-IT Ltd., (TASE: MTRX) and a part of the Global technology group Formula Systems Ltd. (Nasdaq: FORTY).
About VendorRate
VendorRate is a Los Gatos, California based business intelligence company providing quantifiable, reliable ratings and reports on technology vendors in the IT and telecom industries. Established in 2007, the company works with technology purchasers to improve their overall decision-making process. For more information, visit www.vendorrate.com.
Xtivia, an information technology and Internet solutions firm, was rated number one by information technology professionals. In fact, Xtivia led by earning an exceptional rating in all ten benchmarks. Xtivia has clients in a range of industries including airlines, banking, biotechnology, healthcare and government.
Dennis Robinson, president and CEO of Xtivia, attributes the success to the commitment Xtivia has towards providing quality support. “This rating would not have been possible without our dedicated staff, our excellent industry leading technology partners and above all, our customers. This report only fuels our desire to continue our efforts to be a trusted resource. We are all very proud to have received this recognition by our customers,” says Robinson.
VendorRate users rate vendors confidentially on 10 specific performance criteria including customer service, reliability, integrity, budget and effectiveness. The results produce a cumulative score up to 100. VendorRate collected the data in July, August and September and released the findings on October 14, 2009.
About Xtivia
Xtivia, Inc. is a leading information technology and Internet solutions firm that specializes in helping organizations manage critical business information and processes across all communication channels. Xtivia has offices in New York, New Jersey, Colorado and Texas and is a subsidiary of Matrix-IT Ltd., (TASE: MTRX) and a part of the Global technology group Formula Systems Ltd. (Nasdaq: FORTY).
About VendorRate
VendorRate is a Los Gatos, California based business intelligence company providing quantifiable, reliable ratings and reports on technology vendors in the IT and telecom industries. Established in 2007, the company works with technology purchasers to improve their overall decision-making process. For more information, visit www.vendorrate.com.
Cricket Communications and mPortal Named Key Technology Enablers in U.S. Mobile Data Services by Frost & Sullivan
mPortal, Inc., a leading enabler of mobile user experiences, and Cricket Communications, Inc., a leading provider of unlimited wireless services, have been named the Key Technology Enabler in U.S. Mobile Data Services by industry analyst firm, Frost & Sullivan.
The Frost & Sullivan Award for Key Technology Enabler is given to the company that has played a significant role in encouraging participation in a new and dynamic market opportunity. The companies are recognized for deploying mPortal`s SPRINGBOARDSmart Client product, software platform that enables service providers to develop next-generation user experiences, across multiple mobile devices offered by Cricket.
"The amount of mobile data traffic going outside the operator networks continues to increase rapidly," said Vikrant Gandhi, Senior Analyst at Frost & Sullivan. "It is extremely important for mobile operators to capitalize on the premium content opportunity proactively or risk disintermediation due to the rapidly evolving relationship between independent content providers and their customers. Solutions such as mPortal's SPRINGBOARD Smart Client are the ideal tools to help mobile operators execute their long-term mobile data growth strategies."
mPortal`s Smart Client solution is comprised of a home screen manager, an open standards-compliant mobile widget platform and an app store that can be customized to suit the service provider`s needs. Cricket is using the platform to provide a common, branded experience across their lineup of available phones to promote content discovery and usage. The platform is open to developers to create widgets that can be made available to Cricket customers.
Frost & Sullivan published a white paper about the Key Technology Enablers in U.S. Mobile Data Services Award, including an overview of the current state of the U.S. mobile data services market, key industry challenges in mobile data services, and the implications for the mobile operators. To download the free white paper, visit www.mportal.com/aboutus/whitepaper.
About Frost & Sullivan
Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan`s Growth Partnerships, visit http://www.frost.com.
About mPortal
mPortal Inc., founded in 2000, enables mobile content and applications for Mobile Network Operators (MNOs), Mobile Virtual Network Operators (MVNOs), Cable Operators, Content Providers and Enterprises. mPortal's products and services assist its customers to create, launch, manage, and monetize mobile content and applications across multiple mobile devices and networks. As a total solution provider, mPortal eliminates the complexities involved in launching mobile content and applications. With mPortal as a strategic partner, its customers focus on their core business and rely on mPortal to provide its expertise and experience in launching revenue-generating mobile content and applications. With offices in the US and India, mPortal serves some of the world`s leading companies, including Alltel, AOL, Comcast, Cricket Communications, Disney Mobile, Mobile ESPN, Reliance Infocomm, TV Guide, Verizon Wireless, Time Warner Cable, and XEROX. For more information, please visit www.mportal.com.
SPRINGBOARD is a registered trademark of mPortal Inc. All other trademarks are the property of their respective owners.
About Cricket
Cricket is the pioneer of simple and affordable unlimited wireless services with no long-term commitments or credit checks required serving more than four million customers in 34 states. Cricket offers wireless voice and broadband Internet services over the latest technology, high-quality, all-digital 3G CDMA2000 1X and 1xEV-DO wireless network. Cricket`s wireless voice service plans include unlimited anytime minutes, unlimited U.S. long distance, unlimited text and picture messaging, unlimited text to Mexico, unlimited Mobile Web, unlimited directory assistance, as well as a variety of calling features and feature-rich mobile applications such as popular games, ringtones and wallpapers. Cricket Broadband provides unlimited Internet access anywhere within Cricket`s coverage areas at speeds comparable to DSL. For more information on Cricket, visit www.mycricket.com. Cricket is offered by Leap Wireless International, Inc., headquartered in San Diego, Calif. For more information on Leap, visit www.leapwireless.com.
Leap is a U.S. registered trademark and the Leap logo is a trademark of Leap. Cricket, Jump, the Cricket "K" and Flex Bucket are U.S. registered trademarks of Cricket. In addition, the following are trademarks or service marks of Cricket: Cricket By Week, Cricket Choice, Cricket Connect, Cricket Nation and Cricket PAYGo. All other trademarks are the property of their respective owners.
The Frost & Sullivan Award for Key Technology Enabler is given to the company that has played a significant role in encouraging participation in a new and dynamic market opportunity. The companies are recognized for deploying mPortal`s SPRINGBOARDSmart Client product, software platform that enables service providers to develop next-generation user experiences, across multiple mobile devices offered by Cricket.
"The amount of mobile data traffic going outside the operator networks continues to increase rapidly," said Vikrant Gandhi, Senior Analyst at Frost & Sullivan. "It is extremely important for mobile operators to capitalize on the premium content opportunity proactively or risk disintermediation due to the rapidly evolving relationship between independent content providers and their customers. Solutions such as mPortal's SPRINGBOARD Smart Client are the ideal tools to help mobile operators execute their long-term mobile data growth strategies."
mPortal`s Smart Client solution is comprised of a home screen manager, an open standards-compliant mobile widget platform and an app store that can be customized to suit the service provider`s needs. Cricket is using the platform to provide a common, branded experience across their lineup of available phones to promote content discovery and usage. The platform is open to developers to create widgets that can be made available to Cricket customers.
Frost & Sullivan published a white paper about the Key Technology Enablers in U.S. Mobile Data Services Award, including an overview of the current state of the U.S. mobile data services market, key industry challenges in mobile data services, and the implications for the mobile operators. To download the free white paper, visit www.mportal.com/aboutus/whitepaper.
About Frost & Sullivan
Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan`s Growth Partnerships, visit http://www.frost.com.
About mPortal
mPortal Inc., founded in 2000, enables mobile content and applications for Mobile Network Operators (MNOs), Mobile Virtual Network Operators (MVNOs), Cable Operators, Content Providers and Enterprises. mPortal's products and services assist its customers to create, launch, manage, and monetize mobile content and applications across multiple mobile devices and networks. As a total solution provider, mPortal eliminates the complexities involved in launching mobile content and applications. With mPortal as a strategic partner, its customers focus on their core business and rely on mPortal to provide its expertise and experience in launching revenue-generating mobile content and applications. With offices in the US and India, mPortal serves some of the world`s leading companies, including Alltel, AOL, Comcast, Cricket Communications, Disney Mobile, Mobile ESPN, Reliance Infocomm, TV Guide, Verizon Wireless, Time Warner Cable, and XEROX. For more information, please visit www.mportal.com.
SPRINGBOARD is a registered trademark of mPortal Inc. All other trademarks are the property of their respective owners.
About Cricket
Cricket is the pioneer of simple and affordable unlimited wireless services with no long-term commitments or credit checks required serving more than four million customers in 34 states. Cricket offers wireless voice and broadband Internet services over the latest technology, high-quality, all-digital 3G CDMA2000 1X and 1xEV-DO wireless network. Cricket`s wireless voice service plans include unlimited anytime minutes, unlimited U.S. long distance, unlimited text and picture messaging, unlimited text to Mexico, unlimited Mobile Web, unlimited directory assistance, as well as a variety of calling features and feature-rich mobile applications such as popular games, ringtones and wallpapers. Cricket Broadband provides unlimited Internet access anywhere within Cricket`s coverage areas at speeds comparable to DSL. For more information on Cricket, visit www.mycricket.com. Cricket is offered by Leap Wireless International, Inc., headquartered in San Diego, Calif. For more information on Leap, visit www.leapwireless.com.
Leap is a U.S. registered trademark and the Leap logo is a trademark of Leap. Cricket, Jump, the Cricket "K" and Flex Bucket are U.S. registered trademarks of Cricket. In addition, the following are trademarks or service marks of Cricket: Cricket By Week, Cricket Choice, Cricket Connect, Cricket Nation and Cricket PAYGo. All other trademarks are the property of their respective owners.
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