CTG Announces Acquisition of etrinity, a Benelux Healthcare IT
Services Provider
BUFFALO, N.Y.,
Feb. 1, 2013
/PRNewswire/ -- CTG (NASDAQ: CTGX), an information
technology (IT) solutions and services company, today announced
that it has acquired etrinity, a provider of IT services to the
healthcare market in Belgium and
the Netherlands, from i-Cros Nv of
Antwerp, Belgium. Terms of the
transaction were not disclosed. CTG expects the acquisition will be
neutral to slightly accretive to its 2013 earnings.
Founded in 2000, etrinity's 2012 revenue approximated U.S.
$3 million. The
firm's IT services are targeted to the healthcare provider market
and include clinical systems integration and implementation,
application management, technology support for medical imaging,
training, and technical resources. There are no
changes anticipated in the management and employees of
etrinity. etrinity will operate as a subsidiary
of CTG and be aligned closely with CTG's European operations with
headquarters near Brussels,
Belgium. CTG Europe is an important IT
service provider in Belgium,
Luxembourg, and the United Kingdom and employs approximately 600
people.
"CTG is very pleased to purchase a healthcare IT services
firm with etrinity's capabilities and reputation in a geographic
region where we are already established as a leading provider of IT
services," said CTG Chairman and Chief Executive Officer
James R. Boldt.
"This strategic acquisition is also very well-timed as the European
market is starting to move toward adopting U.S. electronic medical
records (EMR) systems that enhance the delivery of healthcare from
a cost and outcomes perspective. It also
coincides with some of the largest U.S. EMR software companies
recently establishing operations in several western European
countries. CTG is a leading U.S. provider of
healthcare IT services, putting us in a strong position to leverage
our experience and expertise to capitalize on the emerging
healthcare IT growth opportunities in Europe. As we look to step
up the growth of CTG's healthcare IT business, which contributes
about one-third to our current revenue, etrinity is the model for
the kind of follow-on acquisitions we want to make: smaller niche
healthcare IT providers in the U.S. and Europe."
Jeroen Van Maercke, Chief Executive Officer of etrinity,
said, "We are very excited to be joining forces with CTG, a highly
respected IT services provider in the European market that is part
of a large financially strong U.S. company with significant
implementation experience and expertise in EMR systems expected to
be adopted in Western
Europe over the next few years. Access to
the sizable technical resources of CTG's healthcare business and
European operations also provides us the capacity to significantly
grow our business and offer clients a broader portfolio of
healthcare IT services."
Filip Gyde, Vice President
and General Manager of CTG Europe, commented, "The purchase of
etrinity significantly strengthens CTG's ability to provide IT
support to healthcare organizations in the European
region. etrinity's knowledge of the European
healthcare market and its specialized IT needs combined with CTG's
over 25 years of healthcare IT experience offer a powerful value
proposition to Europe healthcare
providers. Having known etrinity's CEO Jeroen
Van Maercke and COO Wim Iwens for
some time, I have the highest regard for their abilities and am
confident that etrinity is both an excellent fit with and great
addition to the CTG
organization."
About CTG
CTG develops innovative IT solutions to address the
business needs and challenges of companies in several higher-growth
industries including healthcare, energy, and technology
services. As a leading provider of
IT and business consulting solutions to the healthcare market,
CTG offers hospitals, physician groups, and regional health
information exchanges a full range of electronic medical record
services. Additionally, CTG has developed for
the healthcare provider and payer markets unique, proprietary
software solutions that support better and lower cost
healthcare. CTG also provides managed services
IT staffing for major technology companies and large
corporations. Backed by over 45 years'
experience, proprietary methodologies, and an ISO
9001-certified management system, CTG has a proven
track record of delivering high-value, industry-specific
solutions. CTG operates in North America and Western Europe. CTG posts
news and other important information on the Web at
www.ctg.com.
About etrinity
etrinity NV, founded in 2000, is a Benelux health care
system integrator with a complete set of services and solutions and
highly experienced and dynamic IT professionals with a single focus
on healthcare. etrinity's mission is to create
added value in healthcare as an independent, innovative and
strategic partner. Our extensive knowledge in the healthcare
sector, combined with a complete range of services and solutions
create added value for our customers and partners. More information
can be found on the Web at www.etrinity.eu.
Safe Harbor Statement
This
document contains certain forward-looking statements concerning the
Company's current expectations as to future growth. These
statements are based upon a review of industry reports, current
business conditions in the areas where the Company does business,
the availability of qualified professional staff, the demand for
the Company's services, and other factors that involve risk and
uncertainty. As such, actual results may differ materially in
response to a change in such factors. Such forward-looking
statements should be read in conjunction with the Company's
disclosures set forth in the Company's 2011 Form 10-K, which is
incorporated by reference. The Company assumes no obligation to
update the forward-looking information contained in this
release.
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SOURCE CTG