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ICF International to buy Henrico’s Ironworks Consulting LLC

December 14, 2011
By Carol Hazard / Richmond Times-Dispatch

Fairfax-based ICF International, a provider of consulting services and technology solutions to government and commercial clients, plans to buy Ironworks Consulting LLC, an interactive Web development firm in western Henrico County, for $100 million in cash.

Founded in 2001, Ironworks provides IT and Web development services to customers in the health, energy and financial services industries, as well as government agencies and nonprofits.

"This transaction is emblematic of ICF's strategy — to continuously expand our range of implementation service offerings in our markets," said ICF International Chairman and CEO Sudhakar Kesavan.

"Ironworks is an excellent strategic fit for ICF, adding complementary capabilities and clients across several of our key markets."

The purchase will strengthen ICF's position in the fast-growing interactive digital services, he said.

The transaction is expected to be completed by the end of the year.

For 2011, Ironworks is expected to have revenues of $57 million and an operating income margin of greater than 20 percent.

Its commercial business is expected to account for about 65 percent of 2011 revenues.

In the government arena, Ironworks' clients include the Centers for Disease Control and Prevention, the Department of Veterans Affairs and the National Science Foundation.

The company employs about 300 people, including contractors, and has offices in the Innsbrook Corporate Center, Tysons Corner and Minneapolis, as well as Raleigh and Charlotte, N.C.

"One of the reason we did this deal is every single employee will have a job offer," said Ironworks CEO Scott Walker, who will run a division of ICF that encompasses his company.

"We looked at it, and it was a great cultural fit and it will provide a lot of opportunities for the employees here," he said.

The purchase will be funded through ICF's existing bank credit line. The purchase price does not include the net present value of a tax benefit of about $23 million, ICF said in a release.

The deal provides new selling opportunities for ICF among customers in the federal government and in the commercial energy and nonprofit arenas. Ironworks extends ICF's ability to provide customer-facing applications in the commercial energy market.

The sale also offers ICF additional opportunities in the financial and commercial health industries, the companies said in a statement. The transaction represents ICF's first substantive entrance into that market, where Ironworks has a number of long-standing clients.

Since 1969, ICF has been serving government at all levels, major corporations, and multilateral institutions. The firm employs about 4,000 people worldwide.

 

Copyright Richmond Times-Dispatch. Used by permission.

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