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ICF (ICFI) Agrees to Purchase Creative Systems and Consulting

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ICF International, Inc. (ICFI - Free Report) yesterday announced that it will acquire IT modernization and digital transformation solutions provider Creative Systems and Consulting (Creative). The deal is subject to customary closing conditions and financial terms have been kept under wraps.

Established in 2010 and currently employing around 270 professionals, Creative is an expert in planning, designing and managing SaaS environments through human-centered design and, Development, Security and Operations approaches.

How Will ICFI Benefit?

With complementary capabilities, the addition of Creative expands ICF’s federal IT modernization/digital transformation capabilities with leading Salesforce and Microsoft implementation teams.

The acquisition is expected to generate around $60 million revenues in 2021 and help ICFI maintain a revenue growth rate in the mid-teens in 2022. It is anticipated to be slightly accretive to ICF's GAAP EPS in 2022.

“We expect this acquisition to provide significant opportunities for revenue synergies over time as ICF now will offer leading practices supporting the most highly adopted low-code/no-code platforms in the federal government,” stated John Wasson, chairman and chief executive officer of ICF.

ICF’s shares have had an impressive run on the bourse in the past year. The company’s shares have appreciated 31.9% compared with the 29.8% rally of the industry it belongs to and 0.7% growth of the Zacks S&P 500 composite.

 

Zacks Rank and Other Stocks to Consider

S&P Global currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks in the broader Business Services sector areAvis Budget (CAR - Free Report) and Cross Country Healthcare (CCRN - Free Report) — both sporting a Zacks Rank #1 — and Charles River Associates (CRAI - Free Report) , carrying a Zacks Rank #2.

Avis Budget has an expected earnings growth rate of 453.5% for the current year. The company has a trailing four-quarter earnings surprise of 76.9%, on average.

Avis Budget’s shares have surged 529.1% in the past year. The company has a long-term earnings growth of 18.8%.

Cross Country Healthcare has an expected earnings growth rate of 500% for the current year. The company has a trailing four-quarter earnings surprise of 75%, on average.

Cross Country Healthcare’s shares have surged 165.6% in the past year. The company has a long-term earnings growth of 21.5%.

Charles River Associates has an expected earnings growth rate of 61.2% for the current year. The company has a trailing four-quarter earnings surprise of 51%, on average.

Charles River’s shares have surged 74.9% in the past year. The company has a long-term earnings growth of 15.5%.