On June 30th 2021, ASGN acquired the enterprise resource planning, or ERP, healthcare and manufacturing consulting business unit of Avaap, a modern enterprise solutions integrator with domain expertise, for $86 million in cash. The Avaap unit and its roughly 240 talented employees are now part of Apex Consulting Services and will strengthen our modern enterprise solutions capabilities in the Healthcare and Consumer & Industrials sectors.
Through this acquisition, we will be able to provide our current Healthcare and Consumer & Industrials customers with new and expanded advisory and managed service offerings, while also enhancing the offerings the Avaap team can provide their current customers now that they are a part of Apex and ASGN.
With budgets for major IT investments expanding, we expect significant opportunities ahead for the Avaap business as legacy users of the Infor enterprise platform upgrade to the cloud, specifically healthcare and manufacturing users amongst other industry users as well.
ASGN held a conference call on July 1, 2021 to discuss this announcement. The prepared remarks, supplemental materials and webcast information for this call can be accessed on the Events & Presentations section of ASGN’s investor relation’s website.
Positioning ASGN for Success
The economy is improving, our customers are actively increasing their IT budgets, and we are executing on our long-term business model exactly as planned. With a strong balance sheet and ample cash flow, we will continue to make acquisitions in the commercial and government end markets that provide us with industry expertise along with new capabilities, new customers and new contract vehicles. You can expect us to become increasingly focused on building our commercial consulting practice which continues to grow as a percentage of our total business mix. We will also continue to invest in our federal government business, which has now surpassed $1.0 billion in annual revenues.
We are currently planning an investor day later this year in which we will communicate to our investors and the market our near and long-term vision, strategy and goals. The details of this event will be forthcoming.