Consulting services company ICF (Nasdaq: ICFI) has agreed to acquire SemanticBits for approximately $220 million to expand its health information technology and digital modernization capabilities in support of federal health agencies.
Fairfax, Virginia-based ICF said Wednesday it expects the acquisition to close in mid-July, subject to regulatory approvals and other customary closing conditions, and to be accretive to its earnings per share upon closing.
Established in 2005, SemanticBits has a team of approximately 400 technologists and practitioners focused on delivering data analytics, cloud-native platforms, Agile development and other digital transformation services using open-source frameworks. The company also support health IT projects of federal health agencies, including the Centers for Medicare and Medicaid Services.
John Wasson, chairman and CEO of ICF, said SemanticBits brings health IT and data science platforms that would further scale ICF’s digital modernization capabilities in support of projects across federal civilian agencies and that the transaction would enable the company to strengthen its presence in key growth markets.
“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,” added Wasson, a two-time Wash100 Award winner.
ICF said it will use existing credit facility to fund the transaction and expects SemanticBits to realize about $135 million in annual revenue in 2022, with $115 million of it expected to be recurring in 2023.