ICF (Nasdaq: ICFI) has agreed to purchase Creative Systems and Consulting for an undisclosed sum as part of efforts to expand its federal information technology modernization capabilities.
Creative has been delivering digital strategy, data analytics, cloud and infrastructure platforms and other digital transformation support to federal agencies since 2010, ICF said Monday.
Creative has over 900 platform and technical certifications and about 270 employees with expertise in Microsoft, Salesforce and ServiceNow platforms. It has designed and managed software-as-a-service environments through DevSecOps and human-centered design approaches and has backed more than 200 federal infrastructure and cloud projects.
Baird acted as exclusive financial adviser to Creative on the transaction that is expected to conclude before the end of 2021, pending customary closing conditions.
“The acquisition underscores the continued growth and importance of low code/no code software development capabilities,” John Song, a managing director at Baird and a 2021 Wash100 Award recipient, told GovCon Wire.
Song added that ICF has demonstrated its position in the market with its purchase of Creative.
ICF said it expects Creative to record approximately $60 million in 2021 revenue and anticipates the deal to be slightly accretive to its GAAP earnings per share in 2022.
“This transaction is aligned with our strategy of pairing organic growth with select acquisitions that strengthen ICF’s position in key growth markets,” said John Wasson, chairman and CEO of ICF and a two-time Wash100 Award winner.
Wasson added Creative has supported federal civilian agencies, including the departments of Health and Human Services, Agriculture and the Treasury, and the company’s cloud development expertise will broaden ICF’s qualifications in the field of federal IT modernization and digital transformation.