PRGX Global Completes Acquisition of Lavante
"We are pleased that we were able to close this transaction quickly. We are excited to offer Lavante's industry-leading SIM technology platform and expertise to our global client base. This platform provides an advanced set of SIM capabilities and improves management of supplier risks and performance," said
The Lavante acquisition will allow PRGX to offer its global clients a solution for improved management of suppliers. Specifically, the Lavante SIM platform is designed to enable efficient supplier on-boarding, compliance with regulatory and buyer requirements, and identification of key insights from P2P data.
"The market for dedicated supplier management managed services is increasing materially. Companies are increasingly tackling a range of initiatives through the collection, maintenance, analysis and active governance of better supplier data either internally or through outsourced managed services," said
In connection with the
closing of the Lavante acquisition, on October 31, 2016, the Company granted options to purchase a total of 172,500 shares of the Company's common stock to six Lavante employees. The options have an exercise price of
The grants were approved by the compensation committee of the Company's board of directors, which committee is comprised solely of independent directors, and were granted as an inducement material to the employees entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).
In addition to historical information, this press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include both implied and express statements regarding the anticipated benefits from the Lavante acquisition, the Company's overall condition and growth prospects, the Company's execution of its transformation strategy, the Company's investments in, and opportunities associated with, its growth platforms, including its
supplier information services business. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from the historical results or from any results expressed or implied by such forward-looking statements. Risks that could affect the Company's future performance include revenue that does not meet expectations or justify costs incurred, the Company's ability to develop material sources of new revenue in addition to revenue from its core recovery audit services, changes in the market for the Company's services, the Company's ability to retain and attract qualified personnel, the Company's ability to integrate recent and future acquisitions, the Company's ability to integrate the Lavante acquisition, uncertainty in the
credit markets, the Company's ability to maintain compliance with its financial covenants, client bankruptcies, loss of major clients, and other risks generally applicable to the Company's business. For a discussion of other risk factors that may impact the Company's business, please see the Company's filings with the Securities and Exchange Commission, including its Form 10-K filed on
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