W. CONSHOHOCKEN, Penna. – July 16, 2006 – Fusion Technologies, a global provider of IT services, announced today that it had been acquired by Alliance Consulting Group. Alliance Consulting is wholly-owned by Safeguard Scientifics, Inc. (NYSE: SFE).
Fusion Technologies has U. S. headquarters in Edison, New Jersey and extensive operations in Hyderabad and Bangalore, India. Fusion Technologies was at an approximately $16 million annual revenue run rate in the most recent quarter, and it has over 30 active clients primarily in the financial services and high technology industries. Approximately 80% of Fusion’s 250 employees are based in India, more than doubling the size of Alliance Consulting’s Indian operations. For more on Fusion Technologies, please see http://www.fusiontech.com
According to Rich Napoli, Fusion Technologies’ CEO, and Paul Keogan, Fusion Technologies’ CFO, “Fusion Technologies has a proven track record of providing excellent global delivery of IT services and we are delighted to become a part of Alliance Consulting, a company that shares our vision and with whom we can achieve new heights.”
Fairmount Partners of West Conshohocken, PA served as financial advisor to the shareholders of Fusion Technologies. For more on Fairmount Partners, please see http://www.fairmountpartners.com.
Anthony Ibargüen, President and Chief Executive Officer of Alliance Consulting, stated, “We are very excited about the acquisition of Fusion Technologies. The acquisition significantly expands our ability to service customers via a global delivery model, in addition to bringing significant client relationships and skill sets in areas that are aligned with the company’s strategic focus. In addition, Fusion Technologies brings significant domain expertise in early stage, rapidly growing market opportunities such as Service Oriented Architecture and open source development. These capabilities will enhance Alliance Consulting’s value proposition across its entire customer base.” For more on Alliance Consulting, please see http://www.alliance-consulting.com.
Peter J. Boni, President and Chief Executive Officer of Safeguard Scientifics, added, “Alliance Consulting has significantly improved its operations and gained significant share in the IT services market over the past several quarters. We believe the acquisition of Fusion Technologies will further enhance Alliance Consulting’s long-term growth and profitability profile, and is consistent with our strategy of putting capital to work in ways that will grow long-term value for the shareholders of Safeguard Scientifics.” For more on Safeguard, please see http://www.safeguard.com.
Terms of the transaction were not disclosed.
Principals of Fairmount Partners acted as advisors to Fusion Technologies in this transaction.
Richard W. Thatcher, Jr.