Top 100 Computer Companies
CTG Completes Acquisition of
Elumen Solutions, Inc.
BUFFALO, N.Y.--(BUSINESS WIRE)--Feb. 23, 1999-- CTG HealthCare
Solutions -- A Leading Information Technology Consulting Firm for the Heath Care
Industry, CTG (Computer Task Group (NYSE: TSK), a $468 million international
information technology (IT) services company, today announced that it completed its
acquisition of Elumen Solutions, Inc. (Elumen), after receiving all required regulatory
As a result of the acquisition, Elumen has been combined with
CTG's health care practice to form CTG HealthCare Solutions, a leading national IT
consulting firm to the health care industry. Together, Elumen and CTG's health care
practice account for approximately $44 million in 1998 revenues, serve approximately 250
health care clients, and comprise more than 300 health care IT consultants.
Commenting on the acquisition, CTG Chairman and Chief Executive Officer Gale S.
Fitzgerald said, "This strategic combination of Elumen Solutions and CTG earns CTG
HealthCare Solutions a leadership position in IT consulting for health care organizations.
This is one of the fastest growing sectors of IT consulting, and this investment is
consistent with CTG's strategy to step up our growth through Key Client relationships and
higher-value managed services."
Ms. Fitzgerald continued, "Industry analysts expect annual growth rates of over 20
percent in the health care IT sector due to the creation of large, integrated health care
delivery systems, the ongoing consolidation of health care providers and systems, the
impact of managed care, and the need to invest in information technology to improve
patient care and achieve cost and operating efficiencies."
The aggregate transaction value was $89 million, of which $86 million was paid in cash
or through the assumption of Elumen's debt. The remainder of the consideration was the
issuance of approximately 128,000 shares of CTG common stock. The acquisition is being
accounted for as a purchase and is expected to be neutral to slightly accretive to
earnings in 1999.
Ms. Fitzgerald noted that CTG HealthCare Solutions will initially represent about 10
percent of CTG's total revenues. CTG HealthCare Solutions is expected to provide
significant growth to CTG in revenues and profitability.
CTG HealthCare Solutions will be led by Christopher J. Bergmann, who was the president
and chief executive officer of Elumen Solutions and has been named a vice president of
CTG, reporting to Ms. Fitzgerald.
CTG provides IT solutions to Fortune 500 and other companies through strategic
partnerships. Leveraged by more than 30 years' experience, CTG manages IT services for
some of the world's leading companies so they can focus on their core businesses and use
IT, which has become vital to competitiveness, to excel in their markets. CTG's resources
include its 55 offices in North America and Europe, more than 6,000 IT professionals, a
suite of proprietary service methodologies, strong project management expertise, and a
proactive recruiting approach, CTG-SmartSource.
Named by Computerworld magazine as one of the 100 best places to work in information
systems for the last three years, CTG has earned a reputation as a progressive employer.
Today's news release, along with CTG news releases for the past year, is available by
fax at no charge by calling Corporate News on the Net at (800) 742-7505. Additional
information about CTG is available on the World Wide Web at these addresses: http://www.ctg.com and http://www.businesswire.com/cnn/tsk.htm.
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 and other factors which 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 1997 Form 10-K and the Management's
Discussion and Analysis section of the Company's 1997 annual report, which are
incorporated by reference.