Houlihan Lokey Advises CDI

Houlihan Lokey is pleased to announce the sale of the Talent & Technology Solutions (TTS) business unit of CDI Corp. to Artech Information Systems. The transaction closed on October 1, 2018, and was announced on October 2, 2018.

CDI, a portfolio company of AE Industrial Partners, is a multinational company that provides engineering, information technology, and staffing services to clients in a range of industries, including energy, chemical, transportation, and financial services. CDI's TTS business unit comprises a team of approximately 2,500 professionals who deliver IT and engineering talent sourcing services and technology solutions to clients across North America.

AE Industrial Partners is a leading private equity firm specializing in control-oriented investments in aerospace, power generation, and specialty industrial businesses and has strong experience investing in businesses with similar capabilities and end-market exposure as CDI.

Artech is a certified minority- and women-owned business enterprise (MWBE) committed to maximizing global workforce solutions on behalf of its clients. As a leading-edge technology solutions supplier, Artech provides workforce solutions, IT consulting, and SOW-project services. Headquartered in Morristown, New Jersey, Artech employs over 7,800 professionals and maintains more than 25 locations across the U.S., Canada, India, and China. Artech was founded in 1992 and today is a Tier 1/preferred supplier to more than 70 Fortune 500 companies and numerous federal and state government agencies.

The acquisition will significantly enhance Artech's market position, expanding its global talent pool of billable team members and support staff to over 10,000 and adding or expanding its service delivery locations in Atlanta, Georgia; Dallas, Texas; Phoenix, Arizona; West Virginia; and Canada. Additionally, Artech's annualized revenue run rate will increase to over $750 million.

Artech Co-Founder and CEO Ranjini Poddar said, "We are extremely excited to welcome CDI's Talent & Technology Solutions team to Artech. With over 65 years of experience servicing a premier client base, we believe the TTS team will contribute meaningfully to our client service capabilities. The team's drive to deliver extraordinary client outcomes fits well with Artech's client centric culture and will elevate our positioning as the go-to source for IT, engineering, and professional expertise."

Houlihan Lokey served as the exclusive financial advisor to CDI. Houlihan Lokey's Human Capital Management (HCM) team is among the most active M&A advisors in the market, having closed 28 HCM transactions since October 2014, with an aggregate enterprise value of more than $3.9 billion. This most recent transaction further strengthens Houlihan Lokey's leadership in the business services universe and highlights continued momentum and leadership in the HCM sector, which includes staffing, recruitment, VMS, MSP, RPO, and PEO.