CDI Corp Sells its Talent & Technology Solutions Unit to Artech
AE Industrial Partners continues to reshape CDI Corp, after the sale of its aerospace engineering business to Belcan, and the acquisition of Gryphon Technologies, a government services engineering firm. CDI Corp has divested its Talent & Technology Solutions business unit to Artech Information Systems, an IT staffing agency.
The divested business unit, Talent & Technology Solutions (T&TS), provides IT staffing services and does not seem active in ER&D. It is sizeable with 2.5 FTEs and last reported (2016) revenues of USD 75m. T&TS was structured in two units, Specialty Talent, an IT staffing unit, and of EdgeRock Technologies, also an IT staffing business.
The buyer, Artech Information Systems, is an IT staffing business that is a minority- and women-owned. It is headquartered in Morristown, NJ and has a headcount of 7.5k FTEs in 25 locations, mostly in the USA. This is a significant acquisition for Artech, which becomes a business with proforma revenues of USD 750m, and 10k FTEs. Also, T&TS brings new locations for Artech, Atlanta, Dallas, and Phoenix, Cross Lanes (West Virginia), and Canada.
What remains of CDI Corp, new scope, is its core USD 400m-USD 500m Enterprise Talent staffing business that is generic and has a geographical focus. CDI Corp also has Engineering Solutions, a USD 120m business that is roughly split into two equal parts: government services, and energy, chemicals, and infrastructure. Finally, CDI Corp still its staffing franchisor business MRI, a business with USD 50m in revenues.